12/27/2022 0 Comments Mattermost marketplace![]() ![]() Incorporating your employees' demographic data in your strategic planning process helps complete the full benefits picture. ![]() Such a decision could be made without benchmarking data but then it's a guess - and a risk. In this case, an organization could potentially offer more reasonable plans without losing the competitive edge. If the employer contribution is too high or the employee contribution or deductible too low, or if the plan offers too much coverage. While generous benefits are often a bonus - and for many organizations, a major selling point - if they significantly exceed others' programs, that added cost may erase the advantage, or those additional dollars may be better spent to offer programs that employees have been asking for, like an upgraded EAP or enhanced paid parental leave policy.Ī plan that is benchmarked much higher than peers happens for a number of reasons. On the flip side, benchmarking helps you identify when your benefits might be too generous. Read more: 3 steps to strengthen employee benefits using non-traditional data A medical plan that costs more or covers less than competitors could be a deciding factor. Benefits plans out of sync with your industry or region can become a hurdle to acquiring and keeping top talent. In a competitive labor market, employees and job candidates are scrutinizing the entire compensation package, and you should be, too. Real-time benchmarking offers a snapshot of the present and can get more specific on an industry, like nonprofits or independent schools, or a region of the country. They also don't provide the same flexibility or detail. Those aggregated reports can give a broad idea, but the data may be outdated by the time they are released. It's not enough to rely on annual national industry reports. It should compare both cost and benefits of all plan options with those of competitors. Benchmarking annually for medical benefits - comparing the premium deductible, coinsurance, employer contribution, HSA contribution and other metrics - is essential to getting the most out of what you spend on your benefits package. Read more: Amid inflation, startups cannot afford to cut benefits that matter mostįocus on where you would like to make changes to the benefits offerings that matter to your employees most. Ancillary benefits like vision or dental, for example, can be benchmarked less frequently, unless your broker notices something that will make your offerings more competitive. That may sound like a lot of work on top of the other annual benefits tasks like renewals and open enrollment, but it doesn't need to be done for every single benefit you offer. Organizations should annually benchmark their employee benefits against competitors. ![]()
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