Turnover can be a frequent and harsh reality for many companies. Now the pandemic and the Great Resignation have caused enormous shifts in workplaces across the country and many organizations are facing historic levels of turnover. The Job Openings and Labor Turnover Survey (JOLTS) report found that, in September 2021, 4.43 million United States employees quit their jobs, a continuation of an ongoing trend that some are calling a “quitting economy.”
In this changing environment, there’s an opportunity for payers to play a role in improving retention rates and making employees feel valued.
Turnover comes at a high cost
Each time an employee leaves, it can be a significant setback to bottom lines. Replacing a salaried employee costs an average of six to nine months’ salary. Now, with the Great Resignation in effect, potential turnover expenses have doubled over the last 20 months.
Payers are uniquely positioned to help improve retention rates for employer groups with a robust, accessible benefits program. While perks such as catered lunches or special events lose their ability to attract and retain talent, benefits and wellness programs are more highly prized than ever.
Member satisfaction is key to surviving the challenges brought about by the Great Resignation. Happy, healthy employees are more likely to stay with a company, and employers are more likely to invest in rich benefits that increase productivity and revenue, while containing costs.
Engaged members lead to higher retention
Members who are engaged in their healthcare plans have higher retention rates.In a survey released by America’s Health Insurance Plan (AHIP), it was found that employer-provided health coverage was a key factor for 56% of employees when deciding whether to remain at their current jobs.
While measuring a member’s engagement isn’t always simple, attractive benefits such as free primary care and health coaching increase the likelihood they will take ownership of their personal health.
The City of Kirkland, in partnership with Vera Whole Health, developed an incentive program around an Annual Whole Health Evaluation. This evaluation includes an extended appointment with a primary care provider, a biometric screening, a health assessment, and an introduction to health coaching.
For completing an Annual Whole Health Evaluation, employees receive a $600 credit toward their Health Savings Accounts. While the monetary incentive is appealing, the overarching goal of the program is to introduce members to the breadth of whole health services they can expect from this advanced primary care (APC) model. Once they are invested and engaged, the rate of retention rises.
How APC impacts engagement
According to Todd Katz, executive vice president, Group Benefits, at MetLife, “In the past, there was a clear delineation between work and life. That line is now blurred with work and life overlapping more than ever before. As this happens, employees are looking to their employers to help them with their overall wellness needs ... As employees have more non-traditional workplace options available to them, it will become increasingly important that employers prioritize holistic wellness to drive employee engagement and loyalty in this new era.”
Members truly care about their healthcare and they want access to the kinds of features offered through Vera’s APC model. These include:
Personalized care from providers who dedicate more time to their needs
Care teams who listen to their concerns and treat them with empathy and understanding
A holistic approach to healthcare dedicated to keeping them healthy and not simply treating symptoms after they occur
When members have access to APC treatment that delivers all these benefits, they’re far more likely to be engaged in the the process and continue seeking routine care. Their overall health outcomes improve, their productivity is boosted, and their levels of satisfaction are high.
Payers who are able to deliver this type of member experience have a substantial impact on employee group plan retention. This translates into increased revenue, higher productivity, and a robust workplace culture capable of withstanding and overcoming challenges brought about by the Great Resignation.