From the countless unforeseen disruptions paired with a looming recession in 2023, it’s safe to say the American labor market has had a couple of tumultuous years. And employers and their employees across all industries are feeling the whiplash effects.
Because of this, employees are re-evaluating their priorities and making sure their work fits their overall desired lifestyle, which is creating a serious turnover issue. Looking at the reasons behind the issue is an important first step to solving the problem at your organization.
Let’s take a closer look at 5 critical stats you should be aware of regarding employee benefits and retention.
#1
56% of U.S. adults with employer-sponsored health benefits said whether or not they are happy with their health coverage is the key factor in deciding whether to remain with their current employer.¹
In order for you to have impressive benefits, you need to make sure yours provide the flexibility and power to lure in impressive talent and differentiate from competitors. Yes, flex hours, PTO and a 401(k) are all important and valued by employees. But is there any one benefit that stands out above the rest? You’ve probably guessed it already; health benefits take the number one spot as far as what employees want.²
Better benefits, such as ArmadaCare’s employer-sponsored supplemental health insurance plans, can go a long way toward strengthening retention and boosting loyalty. These unique solutions can help employers:
Provide targeted benefit enhancements for specific segments of employee population (such as hard-to-recruit and hard-to-retain key employees)
Deliver compensation value in a tax-efficient way*
Make employees feel rewarded with more value than a one-time bonus*
#2
87% of HR leaders consider improved retention a critical or high priority for the next five years.³
The fact is benefits will always be important for retaining and recruiting employees. It’s what they were designed to be in the first place. Offering benefits to your employees shows you genuinely care about them and their well-being. And it’s crucial not to overestimate your employees’ well-being:
Source: MetLife, 2023
ArmadaCare’s supplemental health insurance solutions give employers options to strategically boost benefits while containing costs. With plans to fit a wide range of employer needs and budgets, these benefits can help employers protect key talent—as well as the bottom line.
#3
The overall cost of replacing an employee can range from one-half to two times the employee’s annual salary.³
Naturally, turnover costs will vary depending on the position and level of compensation. The higher the position, the more cost and time involved in recruiting and the broader the business impact. And it is not just the direct cost to the business, but also the hidden impact of a key person leaving, like:
Ultimately, the overall impact of a key person leaving can put a dent in a company’s bottom line and disrupt growth and other success factors. ArmadaCare’s innovative supplemental health insurance plans are designed to help mitigate turnover by:
Enabling companies to boost benefits in a targeted way for positions with high turnover or to protect key talent.
Delivering meaningful compensation value via tax-efficient* reimbursements of a broad range of out-of-pocket healthcare expenses.
Providing whole-person support: physical, financial and emotional well-being to drive productivity and mitigate burnout.
#4
69% of workers said that having a wider array of benefits would increase their loyalty to their employers.⁴
This helps provide employees with health benefits they will actually use rather than providing too much or too little with one-size-fits-all plans. Offering health benefits that employees truly value will help attract, retain and engage them. In fact, holistically healthy employees are:
more likely to be satisfied with their job⁵
more likely to say they intend to be at their organization in 1 year⁵
more likely to be productive⁵
#5
36% of all U.S. employees plan on leaving their job within the next year. Slightly over a quarter (26%) of those said employee benefits were the main reason.⁶
While we’ve already covered the need and value of providing impressive health benefits, there is one more important step to take and that’s communication. Many employees do not fully understand or utilize their benefits. But keeping benefits front and center is a challenge, especially when employees are busy and bombarded with communications. Amid other demands and responsibilities, HR simply doesn’t have the time to provide ongoing benefit communications.
You need a partner who takes this off your plate—not adds to it. ArmadaCare is passionate about delivering world-class service. We’ve designed our supplemental health insurance plans to provide the best member experience, including communicating to employees so that they understand, use and love their benefits from day one. That’s why:
of members rank ArmadaCare’s benefits as “important” or “most important”
Average number of times ArmadaCare members engage with their plan annually
Average number of times ArmadaCare members use their Rx Visa® Card per month
The Bottom Line
ArmadaCare’s supplemental expense reimbursed insurance solutions are a powerful benefits tool to help employers drive down turnover, improve retention and attract the right key talent. This type of insured plan can be layered on top of the primary health plan for select employee classes only, as defined by the employer—so you can target roles with high turnover.
Keep talent walking in—not out. Put powerful supplemental health insurance plans in place as a win-win for now—and for a stronger employee benefits strategy in the future.
4X
Increase in retention after enrolling in ArmadaCare’s supplemental health insurance plan compared to the national average
About ArmadaCare
A leading insurance program manager, ArmadaCare delivers uncommon insurance solutions designed to enhance ordinary health benefits. With the steadfast belief that insurance should be better, ArmadaCare’s plans fill voids in coverage for routine and unexpected healthcare expenses, offer valuable health and productivity support services and invite usage with modern conveniences, education touchpoints and people-first service. The result gives our clients the edge they need to retain, recruit and reward talent at all levels.