- WTW: Healthcare Costs Projected to Climb 11% in 2027
- Most U.S. Workers Would Prefer Cash Bonus This Holiday Season
- Workers Replaced by AI Would Seek Higher Pay, Job Security to Return
- Lockheed Martin to Pay $29.5M to Settle Discrimination Claims
- Figures and Facts of the Week
WTW: Healthcare Costs Projected to Climb 11% in 2027
Healthcare costs remain the top challenge for U.S. organizations, with medical trend rates before plan changes projected to reach 11% in 2027, according to the 2026 Best Practices in Healthcare Survey by consulting firm WTW.
According to the survey, the top factors driving healthcare costs are:
- High-cost claimants (86%)
- Pharmacy costs (83%)
- Chronic conditions (68)
- Cancer care (64%)
- Medical inflation (49%)
Pharmacy costs are expected to increase 27% (compared to 24.6% in 2025 and 25.5% in 2026).
Forty-nine percent of surveyed organizations said they recognize the need for significant program changes in the next three years, up from 34% in 2025. But only 15% said they would be willing to make significant changes for a 5-percentage-point reduction in healthcare costs.
The rising costs are creating an organizational ripple effect. WTW shared:
- Employer confidence that they will continue sponsoring healthcare benefits in 10 years dropped from 85% last year to 79% this year.
- 78% of employers said cost control is dominating healthcare strategy, compared with 22% that prioritize improving the employee value proposition.
- 68% of employers report healthcare cost growth is outpacing growth in their rewards budgets.
Most U.S. Workers Would Prefer Cash Bonus This Holiday Season
Seventy-seven of U.S. workers said they would prefer a cash bonus as a holiday gift this year, while only 34% typically receive one. This is according to a Workplace Holiday Gifting Report by career website Zety.
When asked what holiday gifts would need to be worth, dollar-wise, to be meaningful, respondents said:
- $50 to $99 (26%)
- $100 to $199 (22%)
- Less than $50 (17%)
- $200 to $299 (9%)
- $500 or more (8%)
- $300 to $399 (3%)
- $400 to $499 (2%)
Thirteen percent said monetary value wouldn’t determine whether an employer’s gift felt meaningful.
The report also shared the holiday wish lists of workers compared with what their employers provided:
|
Holiday Gift or Perk |
What Employees Typically Receive |
What Employees Would Most Like to Receive |
|
Gift card |
39% |
39% |
|
Cash bonus |
34% |
77% |
|
Holiday party or company celebration |
25% |
12% |
|
Team meal |
24% |
9% |
|
Company-branded items |
15% |
5% |
|
Flexible work hours |
10% |
13% |
|
Additional paid time off (PTO) |
8% |
24% |
|
Non-company-branded gifts |
8% |
6% |
When asked how receiving a holiday gift at work would make them feel, respondents said:
- More valued (53%)
- More motivated at work (35%)
- More satisfied with their job (34%)
- More loyal to their employer (18%)
Workers Replaced by AI Would Seek Higher Pay, Job Security to Return
In a report by talent assessment and HR technology company SHL, 8% of workers surveyed in the U.S. and United Kingdom (UK) said they would refuse to return under any circumstances after being replaced by artificial intelligence (AI), but most workers said they were willing to come back under different circumstances. Those reasons included:
- A substantial pay increase (51%)
- Specific guarantees about their future job security (42%)
- Full transparency about AI’s use in their role in the future (40%)
The trend, which SHL calls “AI rebounding,” is more pronounced in the U.S., where 19% of workers stated they had firsthand experience, compared with 13% in the UK.
Twenty-four percent of workers aged 18 to 24 said they’ve personally been AI-rebounded, and 36% are close to someone it’s happened to, making it a common career experience for the newest generation entering the workforce.
“Organizations are making fast, sometimes myopic decisions about their people based on an incomplete picture of what their employees can do with or without AI,” said Lucy Beaumont, SHL’s global senior vice president of product and design. “AI rebounding is what happens when a company automates a role before it has genuinely assessed the human capability inside it. The AI doesn’t deliver, the gap becomes obvious, and the business ends up rehiring the same experts they just let go of, at a far greater cost.”
Lockheed Martin to Pay $29.5M to Settle Discrimination Claims
Defense and aerospace manufacturer Lockheed Martin Corporation, headquartered in Bethesda, Md., has agreed to pay approximately $29.5 million to resolve allegations relating to employment discrimination.
In a two-part settlement with the U.S. Department of Justice (DOJ) and the U.S. Equal Employment Commission (EEOC) announced on Nov. 4, the resolution includes a $22 million False Claims Act (FCA) settlement with the DOJ and a separate $7.5 million agreement with the EEOC providing monetary relief to more than 1,000 Lockheed Martin employees. This is the largest class of workers to publicly recover under an EEOC settlement on account of alleged Title VII violations arising from or relating to a diversity, equity and inclusion (DEI) program or practices.
According to the settlement agreement, the DOJ alleged that Lockheed Martin falsely certified compliance with federal antidiscrimination requirements while maintaining employment practices that considered race or sex in compensation, hiring, promotion and professional development decisions.
Lockheed Martin has denied the allegations, and stated neither settlement constitutes an admission or determination of liability.
Figures and Facts of the Week
- 1.7 million: The projected number of job openings the skilled trades industry will have annually through 2035, according to an analysis by employment website Monster.
- 77: The percentage of managers who reported skill gaps on their teams, according to the 2026 Workforce Readiness Report by skills management platform Skillsoft.
- 77: The percentage of American adults who said a company’s bereavement policy is an important consideration when job hunting, according to a report by the nonprofit New York Life Foundation.
- 54: The percentage of U.S. men who have sacrificed sleep because of pressure to earn more at work, according to a report by career website LiveCareer. Additionally, 48% have sacrificed time with family or friends and 38% have sacrificed their physical health.
- 49: The percentage of U.S. job seekers who said being ghosted by an employer during the hiring process negatively affects their opinion of that company, according to a new survey by employment website iHire.
- 45: The percentage of U.S. workers who said they document workplace interactions more often than they did five years ago, according to a report by career website Resume Builder. One-on-one meetings with direct managers were the workplace interactions workers documented most often (32%).
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