PUBLIC PENSIONSAND EMPLOYEE BENEFITS.

• Position: "Employee Benefits Cost Control Strategies" - Brief Article

Employee Benefits Cost Control Strategies

Roberts, Gary E.

Public Performance & Management Review, June 2001, pp.389-402.

Continuing escalation of benefits costs and a push for more flexible benefits programs have led many local governments to reassess their compensation systems. A survey of 358 municipalities indicates that structural strategies applicable to the demand or supply side of benefits finance (e.g., self-insurance or service regionalization) are much less prevalent than displacement strategies (e.g., outsourcing, higher copayments, or higher taxes) in cutting the cost of benefits packages. Displacement strategies shift costs from one group to another and are used more frequently due to easier and more expedient implementation. Displacement also tends to transfer the cost burden to taxpayers or employees. The author uses a multiple regression analysis to more fully explain the link between different benefits strategies and the overall effectiveness of benefits packages. This regression assessed the effectiveness of overall benefits packages in areas such as reducing turnover, enhancing job satisfaction, and balancin g work/family responsibilities. Analysis...