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Average Cost Of Benefits Now $7,000

The average cost of providing benefits to active employees is 10 per cent of gross annual payroll, or slightly more than $7,000 per full-time employee, says an Aon Hewitt ‘Radar.’ Citing the Conference Board of Canada's ‘Benefits Benchmarking’ survey, it says between 2010 and 2011 costs escalated by an average of 6.2 per cent, more than twice the rate of inflation. Because the arrival of new high-cost biologics could re-accelerate growth in benefits costs, 50 per cent of employers now rate cost containment as very important, up from 41 per cent in 2009. Wellness programs and their impact on engagement will be another focus for many employers. Currently, absenteeism costs an average of 1.2 per cent of payroll annually or $7.4 billion in lost wages.

Courtesy of Benefits and Pensions Monitor website News Alerts

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