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4 Reasons Why You Should be Benchmarking Your Employee Benefits Program

benchmarking your employee benefits

The competition for exceptional talent in today’s workforce is fierce, to say the least. Remaining unchanged from year to year is the importance of great employee benefits packages on a potential employee’s decision-making process. Ensuring that you have the best benefits package for both you and your employees is vital in crafting a strong team. Benchmarking your employee benefits program can help make measuring its performance easier.

What exactly can benchmarking your employee benefits do for your business?

    1. Benchmarking can Measure your ROI
      Employee retention and overall morale are incredibly important to the success of your business. Benchmarking allows you to see if what you’re spending on employee benefits is maximizing your ROI in regards to employee morale. If you don’t have a true grasp on what is and isn’t working, you may want to send out an internal survey to ask what your employees value.
    2. Compare your Employee Benefits with your Competitors
      Recruiting and retaining talent can be tough, especially when your competitors’ benefits packages are stronger than your own. Benchmarking allows you to directly compare your benefits with your competitors on a granular level through industry, geography, or job title. Comparing your benefits will allow you to have a clear vision of what your target workforce looks for in a benefits package when choosing a job.
    3. May Help Lower your Costs
      Through benchmarking data, you may find that the benefits you are offering are more generous compared to what your competitors are offering. You may also be covering more of a medical premium than others, or even overcompensating on salaries and bonuses. While all of these qualities are sure to attract and maintain top talent, you could ultimately be losing on cost efficiency.
    4. Promoting your Benchmarking Findings can Lead to Recognition
      Showcasing your benefits through social media promotes your business to future employees as a great place to work. Great benefits mean more traffic to your business from not only future employees but also future clients. Clients like to see that you treat the people who work for you well, ensuring that they would be no exception. Websites such as Glassdoor and Indeed allow their employees to comment on the benefits given by their employers. This feature allows you to double-dip by promoting your business, as well as gauge how happy (or unhappy) your current employees are with the packages they’re receiving.

Are you searching for a way to compare your organization’s benefits? We’ve partnered with Miliman to offer you a Benefits Benchmarking Survey! Get started with a survey here.