Private exchanges help small to mid-sized businesses attract and retain top talent
Employees are the heart of any business no matter the size, and a productive and loyal workforce will position a business for success. This is good news, especially for small to mid-sized companies, who are looking to expand. In fact, according to MetLife’s 13th annual U.S. Employee Benefits Trends Study, fully half of small to medium-sized employers say that their primary focus for the next 12 months is growth. A key factor in helping these businesses achieve their goals will be their ability to attract and retain top talent, so it’s only natural that employers look for ways to help their employees. Making benefit options available through private exchanges can help employers offer the benefits their employees desire without adding administrative burden.
Leveraging the power of benefits
Employers recognize the key role their employees play in their success. As they look to grow, six in 10 companies report that they are extremely concerned with both retaining and hiring for the skills and talent their company needs, according to the MetLife. This concern is not unfounded — the study also found that just half of employees at small to medium-sized companies say they are satisfied with the job they have now. Luckily, employers have a powerful tool at their disposal that can help them address these concerns: their benefits program.
As the workforce becomes more diverse, employees are increasingly demanding more personalized benefits. A “one-size-fits-all” approach to benefits no longer works. By taking a closer look at their benefits program, employers can update their offerings and boost employee loyalty. The study’s findings support this, with nearly 40 percent of employees from businesses of all sizes reporting that having a wide selection of benefits would make them feel more loyal to their employer.
The study also shows that the more benefits offered to employees, the more appreciation employees show towards their employer. At companies of all sizes where 11-15 benefits are offered, there is a 20 percent increase in the likelihood employees will recommend their employers as a great place to work, compared to those who offer no benefits.
The average number of benefits offered by medium-sized employers is eight, compared to the five offered by small employers (2-99 employees) and ten offered by large employers (5,000 + employees). It’s easy to see that there’s opportunity for employers to take advantage of.
While providing a more robust benefits program may seem intimidating, small to mid-sized businesses need not be overwhelmed by the prospect. Private exchanges are a platform through which businesses can deliver a greater variety of benefit options, including voluntary benefits, without adding to business’ administrative burdens.