From Buffalo Business First (NY):
Construction industry tightens belt
Construction companies across New York state have done away with holiday bonuses, employee stock ownership plans and 401(k) contributions over the past year, according to The Bonadio Group….
The findings came from a survey of nearly 100 Upstate New York companies by Bonadio, an accounting, business advisory and financial services firm that has offices in Buffalo and rural Perry in Wyoming County…..
Key findings of the study were:
• Most companies reported a significant drop in the number of benefit categories offered since last year, including holiday bonuses, stock ownership, Section 125 plans, and 401(k) contributions.
• The overwhelming majority of firms, 85.5 percent, are using an HMO or PPO to manage health care costs.
• Nearly 60 percent experienced an increase in health care plan costs. About 37 percent said their costs remained the same.
• The most common strategy to control health care costs is redesigning the health plan. Six percent said they will ask employees to increase their contribution; about 10 percent said they were going to require employees to do more cost sharing.
• Large firms are covering about 75 percent of the health care premium for single coverage, 55 percent cover for employee-plus-one coverage, and 56 percent cover for family coverage.
• Only 1 of 3 large firms used a paid time off approach for vacation, sick, and personal days.
• Most firms, 66.2 percent, expect no change in employment; 19.1 percent said they would reduce their workforce; 14.7 percent said they would hire more employees
• Of those firms planning to increase wages this year, the raises will be 1 percent to 3 percent.
