BUFFALO, N.Y., July 12, 2016 /PRNewswire/ -- Forty-four percent of employers would switch to an exchange if it could help control their benefits costs without compromising the quality of plans they offer to employees, according to a new Liazon survey. The survey, which gauged sentiment from Human Resources professionals involved in benefits decision-making, reveals that many employers are looking for the very solutions private exchanges are designed to provide.
When asked to rate their level of familiarity with the private exchange model, nearly half (45 percent) of respondents were not very familiar or not familiar with it at all. Another 36 percent were only somewhat familiar with the exchange model. Based on these findings, many benefits decision makers are not aware that private exchanges are an option for successfully addressing their HR strategy goals.
"The results of our survey shed light on the misconceptions held by employers about private exchanges," said Alan Cohen, chief strategy officer and co-founder of Liazon. "Once the value of private exchanges becomes apparent, it is difficult to deny that they offer a solution for businesses to control costs and enhance the quality of their benefits offerings, something that will help them distinguish their organizations and attract and retain talent."
In addition to the 44 percent of respondents who would move to a private exchange for cost control, another 13 percent of employers reported that they would make the switch if they saw proof that private exchanges were successful for companies similar to their own and if those companies were glad they moved. When asked to cite the reasons they are not currently considering a private exchange, 30 percent of respondents said that they like having control over their benefits plan design, and 26 percent reported they did not believe a private exchange would help control costs.
As evidence from early adopters shows, private exchanges are in fact a solution for all of these concerns. Polls of private exchange users prove that exchanges are successfully addressing the needs of companies when it comes to cost control and employer satisfaction, while allowing them to maintain control over the plan designs they offer. Separate polling of employees shows that private exchanges increase employee satisfaction, engagement with benefits, and retention.
About the Survey
This survey was conducted online in May 2016, targeting human resources professionals at small and middle market companies.
Liazon operates the industry-leading private benefits exchanges for businesses across the U.S. Liazon's exchanges are distributed under the brand name Bright Choices® as well as several privately-labeled brands. Bright Choices is an online benefits store that allows employees to personalize their benefits package with a selection of health, dental, vision, life, disability, and a host of other benefits from top national and regional providers. Bright Choices enables companies to achieve a benefits strategy that maximizes value for their benefits dollars and helps them attract and retain talent through high employee satisfaction and empowerment. Liazon was acquired by Towers Watson, now Willis Towers Watson, in 2013. To learn more about Liazon and the Bright Choices Exchange, go to www.liazon.com.
Marketing Director, Liazon