Survey: 43% of employees think health benefits are more important than higher wages

American Payroll AssociationSep 28 2010

Forty-three percent of employees think health benefits are more important than higher wages, according to the recent "Getting Paid In America" survey conducted by the American Payroll Association.

"With the current changes being made to our health care system, it is no surprise that health benefits are top-of-mind for many Americans," said Kevin Hill, vice president of insurance operations for Paychex. "While the role businesses will play in providing universal access to health insurance continues to be defined, business owners need to carefully weigh their options when deciding what's best for their workforce and budget, keeping in mind just how valuable quality health benefits are to employees."  

The survey also showed employees perceive that healthcare costs are rising fast.  When asked, "How much did the cost of health insurance increase in 2009?" 67 percent of respondents guessed "seven percent" or "nine percent."  The actual increase for 2009 was five percent, according to the 2009 Employer Health Benefits survey by the Kaiser Family Foundation and Health Research & Education Trust. This means that, for 67 percent of Americans, the perception of healthcare costs increase is 40-80 percent higher than the actual increase.

"The uncertainty surrounding healthcare is a big concern for employees and business alike," said Dan Maddux, executive director of the American Payroll Association.  "As the costs of healthcare continue to rise, employees should consider Flexible Spending Accounts and other pre-tax, voluntary payroll deductions to ease the burden of these necessary expenses."

The "Getting Paid In America" survey coincides with APA's annual public awareness campaign, National Payroll Week (NPW), held annually during the week of Labor Day. Nearly 30,000 employees responded to the survey, providing insight into how employees are paid in America.