While companies are listening to employee feedback, they are not always sure of how to use it to improve employee retention.
A new study by Artemis Health finds that employers are very focused on addressing issues around the Great Resignation, but they are not confident they have the data and tools to do so. The new survey by Artemis, a data analytics company, found that while companies are listening to employee feedback, they are not always sure of how to use the feedback and data to improve retention of employees.
The report found that three out of benefits leaders say they base employee benefits decisions on employee feedback, up 33% since 2019. At the same time, employers are struggling to find useful data outside traditional claims data. The report said that 53% of respondents feel "very successful" in using non-traditional benefits data—such as financial, 401(k) and retirement data, wellness programs, diversity, equity and inclusion statistics, and social determinants of health when making benefits decisions.
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The report suggested that company leaders may not have the right information to effectively shape benefits plans in a way that best serves employees. "Employee opinions are helpful for crafting benefits packages that reduce turnover and attract top talent, but this data is just one input into successful benefits design," says Grant Gordon, CEO and co-founder of Artemis Health. "Employers must also analyze their benefits data to find out what's working, what's delivering better outcomes, and which programs are offering value on investment."
Employee feedback, quality of services are top priorities
The survey found that "employee feedback" was the top response when companies were asked what sources were used to make benefits decisions, a 33% jump compared to Artemis' 2019 survey. The report said 74% of respondents listed employee feedback as a top-three priority; 30% listed it as the top priority. Internal benefits reporting and/or analysis was the second most-popular answer: 69% listed it in the top three, 21% said it was the top priority when making decisions.
Another interesting finding was the emphasis on quality of health care services over controlling costs. Even though health care costs continue to rise, companies are seeing retention as an even bigger problem, the survey suggested.
The report found that 78% of respondents said they were more concerned with the quality of their health care benefits over reducing costs. The Artemis analysis said this fit with results from 2020, continuing a trend of valuing quality over savings.
"Once again, trends around The Great Resignation may be at play here," the report said. "Health care costs must be secondary in a world where employees are in the drivers' seat. Employers are competing for talent, and they want to compete on the quality and attractiveness of their employee benefits package."
Clear on priorities, unsure about using data
As focused as companies may be on meeting the needs of employees, they still struggle finding useful data and programs, the survey said. As noted above, only half of employers said they felt very successful in using benefits data outside traditional claims data. "This stands in stark contrast to the 85% of 2020 survey participants who agreed benefits data was a crucial tool for decision-making," the report said. "Everyone knows data is critical; not everyone feels they have the tools to use it successfully."
Not surprisingly, the respondents listed finding new programs and managing new programs as challenges: 27% said finding new benefits programs was a top challenge, 23% said measuring and managing new programs were a top challenge.
"With the rising need for mental health point solutions, new expectations around digital care, and the need for competitive benefits, leading organizations will need assistance with all stages of the benefits lifecycle," the report said. "They will rely on partnerships with brokers, consultants, and benefits analytics solutions to find and implement point solutions that will deliver value."
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