Skip to main content Skip to Footer

LATEST THINKING


HEALTHCARE IS A KEY TO WORKER RETENTION

Survey shows many employees ready to leave if their insurance goes

OVERVIEW


Accenture asked 2,709 employees about how they view their existing health coverage. Most workers (82 percent) reported high levels of satisfaction with their employer-sponsored healthcare. Further, 76 percent of workers see health insurance as a primary or important factor for continuing to work at their current employer. An overwhelming majority (94 percent) are confident that their employer will continue to provide health coverage.

View the chart

When survey respondents were told, hypothetically, that their employer would no longer provide a group health insurance benefit, 64 percent expressed dissatisfaction with their employer’s handling of the situation. When faced with the prospect of losing their employer-sponsored insurance, many workers expressed the desire to find a new job, and 15 percent said they would plan to leave their job immediately. Nearly one third (32 percent) declared they would be less motivated to work hard.

View the chart

For a firm with 1,000 employees earning an average salary of $50,000, turnover costs alone could climb to more than $3 million1 in the first year. Employers must carefully consider whether health insurance cost savings outweigh corresponding turnover and productivity losses.

1. Calculation based on average turnover costs of 20% of salary. Source: There are Significant Business Costs to Replacing Employees, Center for American Progress, November 2012.

When it comes to worker satisfaction, maintaining a relationship with employees may be just as important as the cost of health insurance.



BACKGROUND

Employers are beginning to consider alternatives to employer-sponsored health insurance. Some may discontinue group health coverage for segments of their workforce, while others may drop health coverage entirely.

DOWNLOAD THE PDF — EMPLOYER BEWARE: WORKERS DEMAND HEALTH COVERAGE [PDF]

KEY FINDINGS

An overwhelming majority (94 percent) of workers are confident that their employer will continue to provide health coverage. When faced with the prospect of losing their employer-sponsored insurance, many workers expressed the desire to find a new job.

DOWNLOAD THE PDF — EMPLOYER BEWARE: WORKERS DEMAND HEALTH COVERAGE [PDF]

ANALYSIS

Even without employer funding, workers indicated a strong preference for employer involvement. Respondents with no financial support were more than three times more satisfied on an employer-curated individual marketplace than when left on their own.

DOWNLOAD THE PDF — EMPLOYER BEWARE: WORKERS DEMAND HEALTH COVERAGE [PDF]

RECOMMENDATIONS

Employers must carefully consider whether health insurance cost savings outweigh corresponding turnover and productivity losses. Health insurers and brokers / benefits consultants should also consider these findings when structuring their clients’ health programs.

DOWNLOAD THE PDF — EMPLOYER BEWARE: WORKERS DEMAND HEALTH COVERAGE [PDF]

EMPLOYEE PERCEPTIONS

The current state of employer-sponsored health insurance

See data that reveals how employees feel about employer-sponsored insurance.

IMPACT OF NOT SPONSORING

Employers not sponsoring health insurance has several impacts

View percentages of employees who would leave their job, be less satisfied or absent more often.