Look at any “best places to work” list, and you’ll notice that most of the companies listed tend to share the same four employee benefit offerings, SHRM’s Steven Williams pointed out during his presentation on employee benefit programs for the organization’s annual conference in San Diego last month: 1) Health care; 2) Work/life balance; 3) Unique or unusual benefits; and 4) Leave.

It should come as no surprise that companies that offer these types of benefits would be considered great places to work.  Unfortunately, with the economy the way it is, and health care being the most expensive benefit to offer, it should also come as no surprise that not every company has the luxury to offer employees health care…

…And not for lack of trying, either: According to 2010 SHRM internal research, despite rising health care costs, employers say the are unlikely to drop health care coverage at their organizations, for fear that doing so will: lower employee morale and satisfaction; hinder their ability to recruit new employees; and significantly increase employee turnover, among other concerns.

And at a time when companies are struggling to both recruit the skilled talent they need and retain top employees as new opportunities open up, these concerns are certainly valid. Yet, as health care costs continue to increase, what is a budget strapped employer to do to maintain this benefit?

Five Ways Employers Can Reduce Health Care Costs
Fortunately, Williams had some advice for these companies, addressing the following five tips for reducing health care costs:

1. Design the health care premium around each employee’s base salary or tenure
2. Make available – and encourage the use of – wellness programs. If implemented correctly, employee wellness programs work: they effectively reduce healthcare costs; they help cut down on employee turnover; and they decrease instances of absenteeism.  (See more about the benefits of implementing wellness benefits in 7 Habits of Highly Successful Corporate Wellness Programs .)
3. Emphasize the use of a mail-order prescription drug program on all maintenance prescription drugs.
4. Require working spouses to elect coverage from their employer, and charge extra to employees whose spouses do not elect such coverage.
5. Consider association-sponsored plans or partnering with other companies.

What about you? Does your company use any of the above methods to reduce health care costs? What else? Please share with us how your company cuts back on health care costs in the comments section below!