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 mid-sized companies (100-4,999), who are looking to expand. In fact, according to MetLife’s 13^th annual U.S. Employee Benefits Trends Study, fully half of 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 mid-sized employers offer the benefits their employees desire without adding administrative burden.

Leveraging the power of benefits

Mid-sized employers recognize the key role their employees play in their success. As they look to grow, six in 10 mid-sized 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 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, medium-sized companies 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 mid-sized employers to take advantage of.

While providing a more robust benefits program may seem intimidating, mid-sized business 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.

Advantages of private exchanges: customization, empowerment, and administration

The value in private exchanges is in the ease of use — essentially they are online stores where employees can purchase benefits. Private exchanges use high-level plan designs, allowing employers to provide a set of products from which employees can create a personalized benefits program. When implemented appropriately, exchanges can help employers offer more flexible benefit programs, which in turn provide employees the personal experience they desire. This is because within standard parameters, employers can present a greater variety of benefit options — creating a benefit package that meets individual employee needs.

In addition to offering personalization, private exchanges can also integrate robust decision support tools, which can create an engaging enrollment experience and help employees better understand the value of their benefits. Exchanges often feature tools and tips that will enable employees to make better benefits decisions and help them to see how benefits can fit into their personal financial situations.

Employees are looking for these resources. According to the study, 55 percent of employees at medium-sized businesses feel “my company’s benefit communications did not effectively educate me on my benefits options,” and 41 percent of employees at both medium and large-sized companies say they were not confident in their last round of benefit.

Finally, exchanges can offer these advantages without adding administrative responsibilities. In fact, exchanges can ease these burdens, as they provide an outsourcing outlet for the employer — streamlining enrollment and billing, shortening implementation time and providing cost-sharing support through defined contribution models. Use of exchanges may also result in cost savings, with 44 percent of private exchange early adopters of all sizes reporting that they have saved money, according to the Private Exchange Evaluation Collaborative’s 2015 Employer Survey.

All employers, no matter their size, are facing an increasingly complex benefits landscape. For medium-sized employers who are focused on growth, and looking to their employees to power that growth, benefits play a critical role in attracting and retaining top talent. While private exchanges can offer multiple advantages to mid-sized employers looking to better address the varied needs of an increasingly diverse workforce, they may not be for everyone. Employers who prefer customized plan designs and want to be heavily involved in benefits administration may not be top candidates for private exchanges. But for those employers looking to maximize options and minimize costs, private exchanges can offer some relief by providing a platform through which they can provide customizable benefits programs with robust educational tools.

Instant Insights /

Private exchanges help mid-sized business attract and retain top talent

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