Jumping Over a Dollar to Pick Up a Penny

31 Jan

In the seemingly never ending hunt for cost savings, American companies have made an art form out of jumping over a dollar to pick up a penny. found-money-inside-small

Here is another example of shareholder pressure for short-term returns resulting in long-term losses and in the end less productive employees.

A new study from the Employee Benefit Research Institute suggests that dropping spousal coverage on health insurance isn’t creating the cost-savings they imagined would come there way.

Instead of piles of profits, it has inspired other companies to do the same. In many cases, this means a married employee who wasn’t covered on your company plan before now must sign up for coverage.  Oops.

In fact, because employers tend to subsidize workers’ health insurance at higher levels than dependent coverage, “employers might end up worse off under a change in spousal coverage policies,” the study’s authors wrote.

When will Boards of Directors and Executives finally learn to stand up to shareholder demands for quick profits?

scroogeOnce again, greed is good only for a short run.  In the long run, treating your employees like part of the reason for a successful company instead of indentured, profit-sucking slaves actually pays off. How about that!?

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