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Why Benefits Benchmarking Matters for Your Business
Benefits benchmarking can help you create a competitive, cost-effective benefits package that attracts and retains top talent. In this guide, we’ll break down what benefits benchmarking is, why it’s crucial, and how to properly evaluate your employee benefits against competitors, industry standards, and emerging trends. Whether you’re looking to enhance recruitment efforts or increase long-term employee satisfaction, this guide will help you make data-driven benefits decisions.
Key Statistics
- 70% of employees say they would switch jobs for better benefits.
- 54% of employees stay in their current job because of its benefits.
What is Employee Benefits Benchmarking?
Employee benefits benchmarking is the process of comparing your benefits package against those of other companies in your industry or region. This analysis helps determine how competitive your benefits are, identify gaps, and uncover opportunities to improve your offerings.
With benchmarking, you can evaluate everything from health insurance and retirement plans to paid time off and wellness programs. The goal is to strike the perfect balance between offering a package that attracts top talent, meets your employees’ evolving needs, and controls costs year over year.
Why Employers Should Use Benefits Benchmarking
1. Maintain a Competitive Edge
A strong salary alone isn’t enough to attract today’s top talent. 70% of employees say they would consider switching jobs for a better benefits package. Ensuring that your benefits stand out against competitors can help you secure and retain the best employees in your industry.
2. Control Costs Effectively
By comparing your benefits with industry standards, you can pinpoint inefficiencies and adjust accordingly. This ensures that you’re investing in the benefits that truly matter to employees while optimizing spending.
With over 90% of employees preferring to work for companies that prioritize their well-being, investing in the right benefits is crucial for long-term financial and workforce stability.
3. Boost Employee Satisfaction & Retention
Happy employees are more loyal. 54% of employees say they stay in their jobs because of their benefits. Benchmarking allows you to understand what benefits matter most to your employees so you can enhance job satisfaction and reduce turnover.
4. Invest Strategically
Benchmarking provides the data you need to determine where to allocate your benefits budget for maximum impact. Conducting an employee survey alongside benchmarking can provide additional insights.
5. Monitor & Improve Your Benefits Over Time
Benchmarking helps you stay on top of current and future benefits trends. By continuously assessing your benefits strategy, you can ensure your offerings remain competitive and aligned with workforce expectations.
How Benely Helps You Benchmark Employee Benefits
At Benely, we believe your benefits broker should go beyond offering standard plans—they should provide annual benefits benchmarking to ensure your packages remain competitive and cost-effective.
Your broker should provide a customized benchmarking report that includes:
- Industry-specific benefits trends
- Competitive analysis of plan designs and coverage types
- Identification of benefits gaps
- Alternative funding options that align with long-term business goals
A well-prepared benchmarking report should be delivered several months before your renewal period, giving you ample time to make informed decisions.
Get a Free Benefits Benchmarking Report with Benely
At Benely, we provide a comprehensive employee benefits benchmarking report that equips you with the data you need to optimize your benefits package.
Ready to see how your benefits compare? Contact our team today for a free benefits benchmarking evaluation and let’s build a strategy that supports your employees while keeping costs under control.
