Using Benchmarking Data to Drive Benefits

Before you renew, take a look at recent benchmarking data on employee benefits. Here’s why.

Benchmarking involves comparing your employee benefits package with other businesses in your industry and geographic area. This data provides valuable insights to help you craft a competitive benefits package that aligns with the needs of your workforce and also helps you meet business goals.

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Why Benchmarking is Important

Is recruiting and retaining top talent becoming a challenge? Is employee engagement declining? If so, the reason might be your benefits offerings. Evaluate recent benchmarking data and current benefits trends to determine how competitive your benefits are, and identify areas that need improvement.

By understanding current benefits trends and benchmark data, employers can make more informed decisions to:

Attract and Keep the Best Employees. Leveraging benchmarking data to drive your employee benefits program is a strategic move that sets you apart from your competitors. It allows you to be proactive in addressing the benefits candidates value most.

During the job search, it's common for candidates to compare benefits packages offered by different employers. According to recent study, 88% of job seekers give some consideration or heavy consideration to better health, dental, and vision insurance benefits when choosing between a high-paying job and a lower-paying job with better benefits. According to an Appcast study, employers experienced a 22% increase in applicants when they included benefit information in their job postings. And benefits also play an important role when it comes to keeping employees. A study conducted by SHRM, 60% of employees said benefits were a determining factor in their decision to stay with their current employer.

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Results like show just how important benefits are to employees. It means your benefits need to stand out or you risk losing top candidates and your best staff. 

Address Workforce Needs. Are your benefit offerings competitive for the roles and the location where your employees are working? You may have a comprehensive benefits package, but it may not align with the specific needs of your employees. By analyzing trend data, employers can proactively address the diverse needs of their workforce. For instance, younger employees may prioritize professional development and flexible work, while older employees may focus on health benefits.

Boost Productivity and Engagement. Employee benefits play an important role in supporting in well-being and productivity. According to the 2024 MetLife Employee Benefits trend study, employees are 20% more productive when they feel valued and supported. And your benefits package is just one way to show your employees just how much you care. 

Saves Money. How do you know if you're spending too much on benefits? Are you offering benefits that employees value or even use? Tracking benchmarking data gives you access to industry's norms and allows you to see what others are spending, empowering you to make informed decisions about the benefits you should offer.  

Identify Emerging Labor Market Trends. Have you expanded operations or added additional staff? Has the demographics of your workforce changed? If so, it's likely that your benefit offerings need to change too. Employee benefits are constantly evolving, with new trends and innovations emerging regularly. For example, recent trends include increased focus on mental health support, flexible work, and financial wellness programs. Staying ahead of the curve gives your business a competitive edge and demonstrates your commitment to employee well-being.  

Supports Long-Term Business Goals. Your employee benefits plan should align with your long-term business goals. Whether you aim to improve employee retention, enhance productivity, or attract top talent, benchmarking data can provide the insights needed to design the right benefits package that supports your goals.

How Competitive is Your Benefits Package?

As enrollment approaches, it’s time to take a fresh look at your benefits package to determine how it’s working for your business and your employees. Before you renew or make changes, find out how your benefits compare with the competition by watching our new Benefits Benchmark Report. 

Conducted by Milliman, a leading worldwide provider of actuarial and related products and services, this annual study includes 2.7 million workers within 30,000 employers across the country. 

You'll learn:

▶️How Current Market Trends Impact Your Benefits
▶️How Your Benefits Compare with Employers Nationwide 
▶️How to Assess Employee Needs 
▶️How to Provide More Relevant Benefits  

🎯Leveraging this data can help you make more informed and strategic benefit decisions, leading to better utilization and a more satisfied workforce. Review the full 2024 Benefits Benchmark Report ▶️ HERE. And if you need help finding the right options for your small business, we're here to help. Just call us at (800) 446-6567.

About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for more than 25 years. Propel partners with small to mid-sized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. For more information, visit www.propelhr.com.