Analysis of Enrollment Data Shows the Impact of a Year-Round Benefits Shopping Experience
Benefitfocus, Inc. , a leading cloud-based benefits management platform and services provider, published findings from its observations derived from the review of anonymized behaviors of four million US employees. Employers that drive an active, year-round benefits experience could be rewarded with up to a 37 percent lower employee turnover rate than their peers.
In a Benefit Insight Brief released based on anonymized data from 476 corporations with more than 100 full-time employees within the Benefitfocus customer base, companies could see a potential decrease in employee turnover of up to 37 percent. The Work Institute, a leader in employee retention programs, estimates that the average cost to an employer of losing a U.S. worker is $15,000. Based on this estimate and the analysis for this brief, a company with 10,000 employees that reduces turnover by 10 percent could retain 70 workers, for a savings of just over a million dollars.
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“Our data shows that there are potentially very tangible results available to employers who shift to a more engaged benefits enrollment process and adopt a strategy that encourages employees through education and relevant insights to consider enrolling in appropriate benefits throughout the year,” said Seth Gregorie, Senior Director of Engineering and Data Science of Benefitfocus. “Our analysis of information from hundreds of midsize to large companies allows us to see a correlation from providing a wide range of benefits to employees, helping them make the best possible choices, and making the process consistent, simple, interactive and timely.”
The Brief also notes that offering more non-traditional benefits that fit a 52-week benefit strategy can help employers boost retention among millennials and Generation Z. “The correlation of benefits offerings and engagement models to retention implies to us an accelerating importance of progressive forms of employee relationship development as a key retention strategy,” concluded Gregorie.
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