Benchmarking – Standing Out From the Crowd. Every company is unique. Some may offer similar services or products, but no two organizations are exactly the same. From the town or state they are located in, to the workforce they support, each business has a unique style and set of needs. The same should be true for the benefits program an organization offers.
It can be easy for employers to renew their plan without proper assessment following a strenuous year or major company alterations. However, continuing this trend year after year can turn a once competitive program into one that doesn't meet current benefit trends or account for rising costs. To return a plan to its original quality or to maintain an affordable, comprehensive benefits program, a comparison to similar businesses could help.
Benchmarking can be a great way to gain insight into how to budget for and structure your plan. However, because your benefits programs should be as unique as your workforce, benchmarking to build your plan should be used strategically. Accurate information about other organizations of your size, industry or area is helpful for budgeting purposes and comparison. Discovering areas of a benefits plan that could set your business apart from the others is key.
After determining how a company’s plan compares to similar organizations, it can be easy to focus on areas where a plan ranks below average. However, knowing where a plan ranks above average is equally important. For example, an option that is not utilized by the workforce and not offered by other businesses could present an opportunity to reorganize funds in a more meaningful way, such as offering a retirement plan or paid time off in place of a free meal plan or gym membership.
Making strategic choices and looking for gaps in current offerings can enhance your benefits and allow you to compete for talent while controlling costs.
KNOW YOUR PEOPLE.
To complete a benchmarking report, an employee survey should be conducted. Your people can be the best resource for information about your employee benefits program. In-depth questionnaires should be distributed to employees regularly throughout the year. Consistent communication also shows you are actively engaged with your people and understand their needs.
With the help of an experienced consultant, accurate data from your benefits program, along with detailed benchmarking reports can be used to help you make informed decisions to design a unique and valuable program. A program that differentiates you from the competition, protects the bottom line and more importantly, becomes a program that your organization is proud of.
BENEFITS THAT MATTER.
Every business is different, from the workforce to the state in which it resides. When benchmarking, be sure to cover all variables because although benchmarking has its place in employee benefits, what really matters is the data and insight from your unique benefits program.
If you have questions about benchmarking, don’t hesitate to reach out.