Employee benefits benchmarking is a practice that gives employers an idea of how they compare against the competition for attracting new employees. Through the acquisition of public and proprietary information, employers are given a sense of how their benefits compare to other employers. With this information, the employer can make adjustments to maintain their competitive position or take a leadership role in their industry by providing richer benefits.
Employee benefits benchmarking can be advantageous at the startup of a company, as well as when a company has been in business for many years. When you want to acquire the best talent in the industry, you’ll practice benchmarking to ensure your company is providing a competitive benefits offering.