Save as PDF
In today's volatile and extremely competitive talent market, it's important to ensure that your employee benefits are an asset to your organization – helping you attract and retain employees. According to Microsoft's Work Trend Index 2021, a global survey of more than 30,000 people in 31 countries, more than 40% of people are considering leaving their employer this year. The proportion increases to 54% when you only look at Gen Z workers. Most employers need to take a more critical look at many cultural factors, including employee benefits, to ensure that their human capital management strategy is ready for what is to happen.
Given this landscape, it is more critical than ever for employers to understand how their benefit plans compare to peer organizations. By using benchmarking data, you can make informed decisions about your employer-sponsored health benefits strategy and possibly uncover opportunities for improvement in the midst of chaos.
Every year, Scott Benefit Services, along with a leading actuarial consulting firm, conducts a Benchmarking Survey for Employees, which is a guide and useful resource for mid-market employers. The 2021 survey results include data from 23,000 companies, representing 1.6 million employees. In the southeastern and Virginia regions, data comes from over 380 companies, representing 110,000+ employees with an average number of employees of ~ 350 employees.
2021 Benchmarking Takeaways
- COVID-19 Impact- Due to the pandemic, the average national cost of care for a family of four decreased by 3.3% by 2020, including a reduction in medical plan expenditures by -5 , 9% -the first reduction in 10+ years. However, organizations should anticipate increased damages in 2021 and adapt renewals in 2022 to have slightly higher requirements due to long-term effects on health care.
- Health plans – The majority of employers – nationally and regionally – offer two or more health plans. Preferred Provider Organizations (PPOs) and High Deductible Health Plans (HDHPs) are still the most popular plan types.
- Increasing consumerism – In an attempt to reduce costs, employers are looking at many different strategies to increase consumerism / better utilization of the benefits of the health plan. From tools to help health care research to innovative plans such as an Individual Health Compensation Agreement (ICHRA), there are several ways employers can give their employees better choices and use their benefits more effectively.
- Alternative financing strategies – Many fully insured groups with 75-200 members are investigating or implementing alternative financing strategies for their employer-supported care plans. These options include self-financing and group health inmates.
The complete, impartial data from this survey are compiled to provide useful benchmarking for employers at the local, national and industry level.
Contact a Scott Benefits Consultant if you would like to compare your benefit plans — including employees' share of premiums, co-insurance and deductible amounts, copy amounts and maximum levels in your pocket — with more than 23,000 mid-market companies nationwide.
About the Mid-Market Benefits Benchmarking Survey
This is the seventeenth year that Scott Benefit Services has offered its measurement market benefit survey together with a highly respected actuarial consulting firm. The survey provides customized benchmarking data for intermediate market companies' benefit plans (50-1,000 employees) at regional and national level. It is the largest benefit survey of its kind in the United States with over 400 regional and 23,000 companies nationally. Our annual benefit survey is still one of the largest of its kind in the Southeast and the United States.