Employee and company financial growth is hindered by cost of employee benefits, according to a Grant Thorton study of 400 CFOs. The same study says 56 percent identify healthcare and pensions as the main reason the cost has increased. And, as the cost of healthcare grows, 77 percent of those surveyed believe healthcare benefits such as life insurance and disability are expected to remain constant while both employee and employer contributions are expected to increase.
The survey also shows that 45 percent of CFOs believe that deficit reduction is the number one initiative to improve overall economic optimism, while 27 percent believe job creation is the solution. In addition, 46 percent said that a tax incentive is not the solution. Even so, 30 percent of those surveyed believe a direct tax incentive for hiring new workers would increase the likelihood of expanding their workforce.
However, most CFOs surveyed were optimistic about maintaining (45 percent) or increasing (37 percent) their headcount over the next six months.