Nearly three-quarters (72%) of employees using a private exchange say they are more likely to remain with their employer because of their benefits program, according to a new Liazon survey.
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The annual survey included responses from 3,948 employees—who selected their benefits through a Liazon-powered exchange—and was used to gauge sentiments about their benefits experience. The survey was distributed on a rolling basis to all employees completing open enrollment in 2015.
The survey findings suggest that retention can be driven by increased engagement and awareness around benefits, including a better understanding of their value as part of the total compensation package.
“The retention case is incredibly strong for private exchanges,” said Ashok Subramanian, Liazon’s cofounder and chief executive officer. “The data show us that employees appreciate their benefits more when they are engaged in the process of selection and view the full cost of their plans. As private exchanges become a more popular form of benefits delivery, employers are beginning to recognize the model as a way to communicate the value of the benefits they are offering to their workforce.”
As the survey reveals, private exchanges help employees become more informed benefits consumers. When asked to compare their current experience using an exchange to the traditional method of benefits distribution, 83% of employees reported they are more engaged in their healthcare decisions and 77% said they value their benefits more than they did previously.
Further, by increasing transparency into employer contributions as well as the full cost of benefits, private exchanges help employees better understand and appreciate their benefits as part of their overall compensation.
In fact, 85% of respondents using an exchange for the first time reported that they are more aware of their company’s contribution to their benefit costs and 81% said that they value their company’s contribution more. These factors can contribute significantly to an overall increase in employee retention, as informed and engaged employees are more likely to be happy employees.
For more information on this survey, click here.