A recent survey by the U.S. Chamber of Commerce indicates that employee benefit costs continue to climb.  The average employer paid out a whopping 42.3 percent of payroll in the form of benefits costs in the year 2003.  That’s up from 39 percent in 2002.  Employees received an average of $18,000 in benefits last year. 

These numbers help clarify one of the reasons that temporary staffing arrangements are looking more and more enticing for employers.  While most employers are committed to maintaining a strong workforce, and providing reasonable benefits for their employees, expenses just keep climbing.  It’s easy to foresee a day when employers will be forced to make tough decisions like eliminating benefits altogether. 

If you’re faced with that difficult choice already, one realistic option to cutting benefits might be to consider using temporary workers for some of your business processes.  Eliminating benefits costs for these employees could allow you to maintain benefits for your most valuable employees.  Contact our office today to consult with one of our Human Resources experts about other ways we can help you take care of your employees and maintain a profit margin.

Source:  U.S. Chamber of Commerce.  “Chamber Survey Shows Worker Benefits Continue Growth.”   

Average amounts for benefits packages in 2003:

• $6,300 = Medically related benefits
• $5,000  = Time not worked (sick leave, vacation pay)
• $2,600  = Retirement benefits