Arguably, the most important component of an effective strategy to recruit and retain employees is offering a benefits package that is both appealing to employees and economical for employers. Business Benefits Group’s (BBG) Benefits Benchmarking Analysis enables business owners to better understand how their benefits package is performing and how it compares to those of their competitors. When executed correctly, benchmarking can equip employers with the information they need to strategically reduce costs, improve operations, and make plan adjustments.
The Benefits Benchmarking Process
Any aspect of an existing benefits package can be benchmarked. The benchmarking process begins with identifying the component(s) of a business’s benefits package that is the most costly, and the component(s) that is the most essential for the success of the business. There is different information to consider during the analysis of a benefits program including, but not limited to:
- The total cost of the benefits program
- The programs cost-sharing measures
- The overall design of a benefits plan
- What voluntary offerings are available
- The design and cost of required/offered worker’s compensation
- The impact of paid leave
Employers can take advantage of claims analysis by comparing the current year’s health claims to those of the previous year. By doing this, employers can benchmark claims expenses to see exactly where their employees are spending more and how/if they are utilizing care above national averages. Once these cost drivers have been identified, employers can make better decisions on how to adjust their plan designs in an effort to influence their workforce’s spending and wellness behaviors.
Advantages of BBG’s Benchmarking Analysis
Over the past several years, benefits benchmarking data has become considerably more valuable. This is because it provides businesses with insight on how to remain competitive and how to lower expenses.
Gaining a Competitive Edge
Using benchmark data allows for organizations to adjust to existing industry standards or, to set new industry standards. Professional benchmarking empowers business owners to identify best practices, new innovations, and the most efficient/effective business operations. Being able to incorporate the successful benefits initiatives of other companies will help businesses to gain a competitive edge in their market.
Reducing Cost and Simplifying Decision Making
Another significant benefit of utilizing benchmarking analysis is the ability to analyze how other companies are structuring their benefits packages and adjusting their overall benefits strategy. Being able to understand and implement what is working for competitors will help businesses to reduce costs, and to potentially simplify benefit decision-making.
Monitoring Your Competition
Employers who understand how their business measures up to their competitors is a critical component of remaining successful. Employers who benchmark their plans against their competitors will be able to implement more effective strategic changes. If an employer knows that their existing plan’s deductible is significantly lower than that of their direct regional competition, then they will feel more comfortable raising it. Employers who know when and where to adjust an existing benefits strategy will be better able to prevent their business from losing ground to competitors.
Contact The Business Benefits Group Today
Businesses who would like to learn more about BBG’s benefits benchmarking analysis services can call directly or, send BBG a message online today to schedule a complimentary benefits consultation. Our knowledgeable Benefits Consultants can provide valuable insight on the in’s and out’s of benchmarking analysis and the true value it can create for businesses.