Applying what you know about Compensation

You have just learned that your company can increase the total compensation and benefits expenditures for the coming year by 6%. Health insurance is part of the standard benefit package and insurance premiums are going up by 14%. The net effect of the amount that the company can pay and the cost of health insurance is that employees will feel that they are falling behind in total compensation. There is no hope for you to get any additional money for either direct pay (compensation) or benefits. What can you do to help head off a demoralizing situation with employees?