It’s a competitive world. In today’s marketplace, you must offer more than a good salary to attract the employees you want on your team. That’s where employee benefit benchmarks come in.
What is an Employee Benefit Benchmark?
A “benchmark” is defined by the Oxford Dictionary as:
“A standard or point of reference against which things may be compared or assessed.”
In employee benefits, a benchmark refers to comparing your business’s benefits packages with your competition and the industry at large. There is not one set measurement per industry but a host of metrics that, together, paint a picture of the companies that provide the most competitive benefits.
Internal Benchmarking
Your company already offers group benefits. Do you know which ones employees appreciate the most? Do you have data on which benefits are most appreciated by your team and which benefits are less popular? This information can help you make the right choices and establish the best group benefits.
External Benchmarking
External benchmarking requires evaluating the benefits offered by other companies in your industry. What types of benefits do they offer? Are they attracting the talent you’d like on your team due to the benefits packages they offer?
How Do I Determine Employee Benefit Benchmarks for My Company?
To review your existing benefits in internal benchmarking, perform staff surveys and evaluate the data regarding your employees and how they use the benefits your company provides. Staff surveys on a sizable sample of employees provide the data you need. For in-depth understanding, include questions that ask employees to elaborate on their responses. Reviewing your records to see what benefits your employees use the most is a revealing exercise. External benchmarking requires research into the benefit packages your competition offers and evaluating the standard benefits offered to employees in your specific industry.
If I Know the Benefit Benchmarks for My Industry, How Do I Use Them?
Once you know where you stand, you can use internal benchmarks to enhance your employee benefits package. If your research shows employees use the group dental insurance most often, it can be worthwhile to enhance those benefits by choosing a better plan. If you discover that very few of your team take advantage of a free gym membership, it is probably safe to cut this benefit and invest in what your employees feel they need. Some of the most valued employee benefits include:
- Group life insurance
- Group vision insurance
- Group health insurance
- Group disability insurance
- Group pension insurance
External benchmarks can incentivize the best talent, as they recognize that your company values its employees. This signals that your business has a supportive culture, a vital consideration for new candidates.
How Often Should I Assess Employee Benefit Benchmarks?
Performing one employee benchmark review is insufficient, as the data changes with time. As employee needs change, your benefits package can be updated. By operating a continuous feedback loop through your HR department, you can respond to emerging trends. Your benefits package should be reevaluated every year based on the data you learn throughout the year.
Give the Best Benefits, Get the Best Talent
Is your employee benefits package looking less appealing than the competitors? Great benefits attract the stars in the industry and can help you avoid losing your best team members. Let us help you find the group benefits insurance that fits your organization’s needs. Contact one of our local agents to review your existing benefits package and advise you regarding newer programs on the market that offer more.