Towergate employee benefits found that 26 percent UK employers miss out on competitive advantages because they don’t benchmark the benefits they provide.
The employee benefits market is expanding, making it harder for companies to differentiate themselves. nearly six out of ten employees are willing to leave their job for better benefits elsewhere. A competitive package is essential to retain top talent. Employers can use benchmarking to identify areas where they excel in their benefit packages and those where they need improvement.
According to new research, only 40% of companies benchmark their benefit packages by sector. Another 37% benchmark them by location and 30% by company size. This shows that companies are not using a structured method for comparing benefits.
Debra Clark, Head Of Wellbeing At Towergate Benefits, has stressed the importance robust benchmarking. Companies that do not benchmark their benefits are missing out. The 74 percent of companies who benchmark their benefits would do well to revisit the comparisons they make. Is it just a quick search on the internet or professional research from experts in employee benefit?
Benchmarking employee benefits has strategic value
The survey examined why employers value benchmarking. The majority of employers, at 58 per cent, believe benchmarking is crucial for both recruitment and retention. It allows them to offer competitive health and wellness packages. Employers that benchmark can let employees know how their benefits compare to other companies, improving both the retention of existing employees and the appeal for prospective hires.
Benchmarking is also helpful to 46 percent of employers in allocating their benefit spending strategically. These companies can save money by comparing their benefits to those offered in the market. In addition, 45 percent reported that benchmarking helps them determine which benefits to add or prioritize in order to retain and attract talent.
Clark said, “Benchmarking for recruitment and retention is crucial. It is not about spending money more, but about cost-effectiveness, and spending wise.”
