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07/29/2009

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You are definitely right about the link between pay and benefits - and, of course, specifically the relationship between the cost of health insurance and cash compensation.

Two related links on the topic:

1. "How Health Care Stole Your Pay Raise" -
http://business.theatlantic.com/2009/06/how_health_care_stole_your_pay_raise.php
Most interesting is the graph at the beginning of the post

2. I wrote a brief blog post after Obama's news conference last week that included a quote from the president that makes very clear the connection between wages and healthcare costs:

http://totalrewards.wordpress.com/2009/07/23/obama-understands-total-rewards/

David, thanks so much for sending those links along. They were very informative.

A couple of thoughts -- the dialogue of comments after The Atlantic article is almost better than the article! And I think that's a great thing. We should be doing more back and forthing, because right now everyone, even in HR, seems to be making untested claims and not worrying a bit about it. (As in, please just make this go away.)

Your blog post - and President Obama's comment -- are a great lead in to the data cited in the blog post. The data provided by McKinsey's research pins down the issues. They really opened my eyes.

I'm hoping that more people read this report data (and others) so they have more than their guestimates to wade into the debate with. Otherwise, we're going to be making hugely important decisions based on attitudes not insights.

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