Private Exchanges Help to Increase Employee Retention, According to Liazon Survey
BUFFALO, NY – May 23, 2016 – Nearly three-quarters (72 percent) 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. 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 co-founder 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 percent of employees reported they are more engaged in their health care decisions and 77 percent 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 percent 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 percent 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.
About the Survey
This annual survey by Liazon, operator of the industry-leading private benefits exchange for businesses across the U.S., polled employees who select their benefits through a Liazon-powered exchange to gauge sentiments about their benefits experience. Data were collected from 3,948 employees. The survey was distributed on a rolling basis to all employees completing open enrollment in 2015.
Survey Resources Available
A complimentary survey report is available for download here.
Liazon operates the industry-leading private benefits exchanges for businesses across the U.S. Liazon’s exchanges are distributed under the brand name Bright Choices® as well as several privately-labeled brands. Bright Choices is an online benefits store that allows employees to personalize their benefits package with a selection of health, dental, vision, life, disability, and a host of other benefits from top national and regional providers. Bright Choices enables companies to achieve a benefits strategy that maximizes value for their benefits dollars and helps them attract and retain talent through high employee satisfaction and empowerment. Liazon was acquired by Towers Watson, now Willis Towers Watson, in 2013. To learn more about Liazon and the Bright Choices Exchange, go to www.liazon.com.
Marketing Director, Liazon