Want your employee benefits to outperform your competitors? You need to be benchmarking. We’ll explore six reasons why benchmarking your benefits is an absolute must for your business.

Benchmarking your business’s employee benefits should be a critical part of your overall people strategy. It’s not just about offering benefits for the sake of it, but making sure that your package aligns with industry standards, meets the needs of your workforce, and supports your recruitment and retention goals. 

And seeing as 60%* of businesses are benchmarking their benefits against competitors, it’s never been more important to see how you stack up. 

Do You Really Need To Benchmark?

If you want to attract and retain top talent, your employee benefits need to be competitive. Benchmarking helps you assess your current situation, what’s going on in the market, and what your employees truly value. 

Old data and guesswork doesn’t cut it any more: workers are more discerning than ever, and are ready to jump ship if they feel they’re not being fairly rewarded. In fact, Drewberry’s latest Employee Benefits And Workplace Satisfaction Survey found that only 13% of employees are truly happy with their benefits package, and a whopping 71% are prepared to leave their current employer for better rewards. 

With this in mind, here are six reasons why benchmarking your benefits is an absolute must. 

1. Keeps Your Business Competitive

Imagine losing your top salesperson or a star candidate to a competitor, simply because their benefits package was more attractive. More than ever, job seekers are weighing up potential employers based on the overall package: salary, benefits, and work-life balance. 

41%** of UK employees consider a good benefits package to be the most important factor when searching for a new employer. Regular benchmarking ensures your offering remains competitive, signalling to current and prospective employees that you value them beyond just their output at work. 

It’s a lot to manage by yourself, which is why we offer expert help with benchmarking your employee benefits.

2. Enhances Employee Engagement

A carefully-crafted benefits package can make employees feel appreciated and cared for, which translates into higher levels of engagement and loyalty.

Benchmarking helps you assess whether your benefits align with employee expectations and industry norms, allowing you to make informed decisions about whether to improve certain rewards or introduce new ones.

And it’s not just about throwing more perks into the mix. Benchmarking helps you identify which rewards are most valued by employees, allowing you to tailor your package to meet their real needs, rather than offering benefits that might go underused or unnoticed.

3. Controls Costs (Without Compromising Value)

When you curate a benefits package based on benchmarking insights, you’re making informed decisions to ensure your benefits budget is spent in the right place. 

For example, introducing flexible working arrangements or upping your employer pension contributions can be just as attractive to employees as more costly options such as Private Healthcare. 

In fact, Drewberry’s latest Workplace Pensions Survey found that 60% of employees told us they’d actually prefer bigger pension contributions over other benefits. Something like this presents a golden opportunity to reallocate your benefit spend to achieve better value (and employee satisfaction) for your money.

“As a small company, the benefits Drewberry sorted for us have put us on par with much bigger competitors, helping us attract the best talent.” – Lauren Alper, Trailmix

4. Adapts To Changing Employee Expectations

The world of work is changing, and so are employee expectations. In recent years, there has been a growing emphasis on flexibility, wellbeing, and work-life balance. Employees are increasingly looking for benefits that go beyond the basics, with flexible working, enhanced holiday, and reduced working weeks cited as the most sought-after benefits by workers. 

Benchmarking allows you to keep pace with these changing trends. By regularly reviewing what other companies are offering (and looking at what employees really want) you can ensure your benefits package evolves with the times. 

5. Strengthens Your Employer Brand

A strong employer brand is one of the most powerful tools in the fight for talent. More than ever, jobseekers want to work for a company that aligns with their values, looks after its employees, and offers meaningful recognition and rewards.

Benchmarking your benefits helps you develop a compelling employer brand that differentiates you from competitors. It enables you to communicate clearly and confidently about what makes your organisation a great place to work, using your benefits as a cornerstone of that message.

6. Identifies Gaps And Opportunities For Improvement

It’s easy to assume that your current benefits tick all the boxes, but without regular benchmarking, you could be missing out on opportunities to improve. Benchmarking provides a reality check by highlighting any gaps in your package compared to industry standards.

Perhaps you’re under-delivering on family-friendly policies, or you’ve missed the growing trend towards mental health support. By identifying these gaps, you can refine your offering to meet modern workforce needs, making your benefits more relevant, and attractive to your current and potential employees. 

Find Out If You’re Leading Or Lagging
Don’t wait until you’re losing staff or struggling to recruit – start benchmarking your benefits today and stay ahead of the curve.

It’s a lot to do by yourself, which is why our benchmarking experts handle it for you. To get started, give us a call on 0207 442 5880 or email help@drewberry.co.uk. 

*2024/25 Drewberry Employee Benefits Benchmarking Report

**2024 Drewberry Employee Benefits And Workplace Satisfaction Survey