For many industries, high employee turnover is a constant challenge. The average yearly turnover rate across industries is 10.6%, but for businesses like professional services (including accounting and IT consulting organizations), tech and media, entertainment, accommodations, and retail, the rates are even higher. Turnover rates can also vary by job function rather than industry, with employees in the fields of human resources, research, product management, marketing, and consulting having the highest rates of turnover comparatively.
High turnover can have a significant impact on business operations, productivity, morale, and organizational growth. It follows that this can also be a pain point when it comes to employee benefits, given the costly nature of group healthcare plans and their correlation with employee satisfaction. But since coming into effect in 2020, Individual Coverage Health Reimbursement Arrangements (ICHRAs) have emerged as a game-changing solution that simplifies the process for companies and provides more options to employees, especially in those high-turnover fields. ICHRAs are providing employers with an alternative to traditional group health plans that can both save money and broaden their benefits offerings to appeal to new workers and help retain existing ones. ICHRAs allow companies to contribute a set dollar amount to employees to spend on an individual plan of their choosing. It removes the pain point of renewals from the corporate HR and broker equation and lets employees select healthcare coverage that best fits their personal needs.
Below, we explore a few of the ways in which SureCo’s ICHRA Solution can particularly benefit companies, in collaboration with their broker partners, that see high employee turnover.
Cost Control and Budget Predictability
With all the costs associated with high employee turnover, ICHRAs empower brokers/benefits advisors and employers to have greater control around healthcare costs. Instead of managing and negotiating group health insurance premiums, employers set a defined contribution amount for each employee. This allows organizations to establish predictable budgets for healthcare expenses and eliminates the uncertainty associated with claims risk and administrative costs. Moreover, ICHRAs can be designed to cater to different employee tiers or job roles, providing employers with the ability to allocate different contribution levels based on job status, geography, and more.
Flexibility, Portability, and Continuity of Coverage
In comparison to a traditional group healthcare plan, ICHRAs offer unparalleled flexibility and portability. This is particularly beneficial for industries with high turnover rates, as it ensures that employees have the freedom to select the coverage that works for them even if they switch jobs frequently. Employees are no longer tied to their employer's health insurance plan, resulting in a seamless transition between jobs without the worry of losing or changing their coverage and reducing the stress associated with changing jobs. On the part of the employer, it also virtually eliminates the need to administer COBRA.
Increased Employee Satisfaction
Better benefits can significantly enhance employee satisfaction, and ICHRAs offer personalized healthcare choices that can better suit individual employees. Unlike with a traditional group plan, employees with ICHRAs can select the insurance plan that best aligns with their preferences, ensuring coverage for specific doctors, specialists, or medical services tailored to their unique healthcare needs and location. Improved job satisfaction and sense of well-being are proven to contribute to reduced turnover rates within the organization.
In industries characterized by high employee turnover, finding a sustainable and effective healthcare benefits solution is paramount. SureCo’s ICHRA Solution offers an innovative approach that meets the needs of brokers, employers, and employees. Talk to a SureCo benefits expert to find out more about how your organization can attract and retain talent, promote employee well-being, and create a competitive advantage in the market while ensuring a smooth transition for employees and uninterrupted healthcare coverage.