What is employee benefits benchmarking?
Employee benefits benchmarking is a practice that gives employers an accurate idea of how they measure up against the competition for gaining new employees. Through the acquisition of public and proprietary information, employers are given a glance at how their benefits offerings compare to the offerings of other employers. With that information, the employer can then make changes as needed to obtain new employees, fulfill an acquisition, launch a new division, or participate in another important move for the company. It’s important a professional takes the reigns in the employee benefits benchmarking process, so everything is done legally and in a way that’s easy to understand.
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When do I need to be aware of employee benefits benchmarking?
Employee benefits benchmarking can be advantageous at the startup of a company, as well as when a company has been in business for many years. When you want to acquire the best talent in the industry, you’ll practice benchmarking to ensure your company is the sought-after company in the market.
What is important to know about employee benefits benchmarking?
Whether the unemployment rate is high or low, benchmarking is something you should conduct every few years. There are various benefits that come along with the practice:
- Employee benefits benchmarking is often most valuable when you go granular, which means you compare by industry, job title or geography, making the results more specific to your needs.
- Benchmarking also gives you a look at your return on investment as you see which benefits you’re spending money on and how that plays a role in employee retention and workplace morale.
- When you understand how your benefits stack up against the competition, you can better market your business to not only potential employees, but potential clients and customers as well.
- Through the benchmarking process, you can be made aware of areas where you are wasting money and where you can save.