Research released today by Towergate Employee Benefits shows that over a quarter (26%) of employers are missing out by not benchmarking the benefits they offer to their workforce, in comparison to those offered by other companies. The research also reveals that just 40% of companies benchmark by sector, 37% by location, and only 30% by size of company.
Debra Clark, head of wellbeing at Towergate Employee Benefits, says: “Companies that are not benchmarking their benefits are really missing out. But the 74% who do benchmark would probably do well to take a second look at the comparisons in their analysis – is it a bit of a ‘finger-in-the-air’ and a quick trawl of the search engines, or is it professional research provided by experts in employee benefits?”
The value of benchmarking
The research asked what value employers see in benchmarking the benefits they offer to employees.
- The majority (58%) said it helps with their recruitment and retention strategy, as they can let their employees know how their health and wellbeing package compares to others and ensure it is competitive.
- Helping the company to direct benefits spend was the next most popular reason, given by 46% of employers, who said it potentially saves the business money, ensuring they get good value.
- And 45% of employers said benchmarking informs them about which benefits to choose to offer their workforce.
Benchmarking is really useful in helping a company to know where its benefits shine and stand out, and where more could be done to be competitive. It also helps with getting the most out of a crowded market. Benchmarking means employers can make sure their offering is competitive and they can then convey this to both current employees and potential employees. It also serves as a useful tool when the range of benefits to choose from is so large and growing.
Debra Clark continues: “Benchmarking is vital for recruitment and retention, and it is not about spending more money, it is about cost-effectiveness and spending smart.”
How to make benchmarking work for the business
Knowing how best to benchmark can be tricky. A company needs to benchmark the right things against the right variables. This is where professional advice can be helpful. Employers should speak to reputable experts who have access to relevant data. This will help them to see the bigger picture of the state of the market and to understand the implications for their specific situation.
For the 13% of companies that stated they do not presently benchmark but plan to do so in the future, and for those who now realise that their current benchmarking process falls short, now is a good time to reach out for specialist guidance.
The post A quarter (26%) of UK companies missing out by not benchmarking benefits first appeared on HR News.
