The employee benefits landscape has shifted dramatically in recent years, especially relating to the growth of health plan costs. The growth of these costs has slowed in recent years, but it has still consistently risen faster than incomes.
Currently, approximately 57% of Americans under 65 have insurance through employers. However, with the ever-growing costs of providing benefits coverage to employees, employers might be tempted to reduce or cut coverage to reduce spending. According to new research done by Accenture, that actually might not be the best choice for employers.
In a national survey with respondents facing the hypothetical situation of losing their employer-sponsored insurance, 36% of full-time employees expressed that they would plan to leave within 12 months, with a full 15% of respondents expressing that they would leave their job immediately. Additionally, 21% of employees believed that they would be absent more often and 32% would be less motivated to work hard. These statistics have been calculated for a company with 1,000 employees earning an average salary of $50,000, the turnover costs alone could amount to $3 million in the first year.
So what does this research tell us? Health insurance is a primary factor for employees when considering their employer. An effective recruitment method is one that ensures employees are covered.
Balancing logistics and the needs of your employee population can be a challenge. Only through detailed analytics can employers properly assess their population and create the best benefits plan specific to their needs. Using data through a robust analytics program allows consultants and carriers to build the most strategic, effective plan with measurable objectives for growth.
Even though premium costs continue to rise, employers must still provide coverage in order to attract a talented and dedicated employee base. Considering potential savings, happier and more productive employees, and applicant interest can help companies grow in more ways than one. And, the best coverage plans come from population analytics that ensure your coverage program is essential and sought-after.