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While 2013 was the year of private exchanges for large employers, the real sweet spot for the defined contribution model could still be ahead in the smaller employer realm.
At a panel at the Workplace Benefits Transitions conference in Chicago on Dec. 11, Booz & Company analysts said that so far, the larger employers taking advantage of private exchanges dont have as much to gain as their smaller counterparts that havent been as quick to adopt the concept.
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Collaboration between employers, brokers and third-party administrators will be essential to developing customized, cost-effective and employee-friendly solutions.
Employers are under pressure to keep benefits competitive while controlling costs, driving new scrutiny of PBMs, hospital prices and GLP-1 coverage for 2027.
With salary budgets holding steady and AI reshaping rewards, employers are looking to transparency, career growth and other benefits to retain top talent.
Smaller companies don't need to outspend to compete, says Justworks SVP, if they focus on these particular strategies that go a long way.
A wide range of employers are expressing a greater desire to measure risk, achieve more predictable retirement benefit costs, and retain top talent.
