Many UK companies are missing out on competitive advantages by not benchmarking their employee benefits against industry standards.
- Research indicates that 26% of UK employers do not compare their benefit offerings with those of other companies.
- Only a small fraction of companies use effective criteria like sector, location, and company size for benchmarking benefits.
- Proper benchmarking aids significantly in recruitment and retention by ensuring competitiveness in employee packages.
- Expert advice can greatly enhance the benchmarking process, offering a clearer picture of industry standards.
A significant portion of UK companies, precisely 26%, are not leveraging the benefits of benchmarking their employee packages, according to recent findings by Towergate Employee Benefits. This oversight results in missed opportunities to align with industry standards and enhance competitiveness.
The study highlights that only 40% of companies employ sector-based criteria, 37% use location-based criteria, and a mere 30% consider company size in their benchmarking processes. This indicates a need for broader adoption of these critical measures to achieve a comprehensive comparison.
Benchmarking plays a crucial role in improving recruitment and retention strategies. By comparing their health and wellness packages with competitors, companies can maintain a competitive edge, ensuring their offerings are attractive to both current and potential employees.
Debra Clark, a leading figure at Towergate Employee Benefits, stresses the importance of professional and thorough benchmarking over simple and generic methods. She asserts that cost-effectiveness and strategic spending are more important than merely increasing expenditure on employee benefits.
Effective benchmarking provides transparency in benefits selection and spending. It allows businesses to identify areas where they perform well and where improvements are needed, thus maximizing the impact of their expenditures. Clark emphasizes that benchmarking is essential for balancing cost-effectiveness with competitive offerings.
The success of a benchmarking strategy often depends on understanding which variables to assess and compare. Professional insights and data-driven analysis can offer businesses a clearer perspective on market standards, guiding them towards more informed decisions.
For those companies, approximately 13%, planning to initiate benchmarking efforts, seeking specialist advice can be instrumental. Advisors with access to extensive data can aid businesses in capturing a holistic view of the market landscape.
To remain competitive, companies must embrace thorough benchmarking practices to optimize their employee benefits.
