Risk & Business Magazine General Insurance Services Magazine | Page 5

BENEFITS BENCHMARKING The Importance Of Benefits Benchmarking: HOW DOES YOUR BUSINESS MEASURE UP? A n attractive benefits program is vital for your recruiting and employee retention efforts, but it is also a significant expense. To ensure you are providing a package that is both competitive and economical, you need to know how your offerings compare to those of other employers in your industry. Benchmark data can provide valuable insight for evaluating your benefits package, helping you conform to or even set industry standards. Quality benchmarking allows you to search for best practices, innovative ideas, and highly effective operating procedures that lead to superior performance. Employer interest in benefits benchmark data has grown over the past decade as the cost of providing health care benefits continues to skyrocket and companies look for new ways to manage expenses. Analyzing how other companies are structuring their plans— and the strategies they are using to cut costs—may make your own benefit plan decisions easier. BENCHMARKING CAN SHOW YOU: • Where your weaknesses are • Where your strengths are and how to maintain them • Which areas you can improve on • Strategies for improvement • New or different ways to do things EVERYTHING CAN BE BENCHMARKED The first step to successful benchmarking is to identify different aspects of your benefits and choose which are the most costly and which are the most important to your business’s success. There is information available for almost any aspect of a benefits program, including: • • • • • • Total costs Cost-sharing measures Plan design Voluntary offerings Workers’ compensation Paid leave Using claims analysis, employers can analyze their own health claims from the previous year to see where employees are spending more money or utilizing care above national norms. Once cost drivers are identified, employers can make changes to plan designs to influence employee wellness and spending habits. Benchmarking can also be a powerful tool to measure your business against the competition. By benchmarking your plans against those of your competitors, you can remain competitive in the market while implementing strategic changes. For instance, you may see that your deductible is much lower than other employer deductibles in your region or industry, so you may feel comfortable raising it. Whether you are curious to know how your voluntary disability benefits stack up or are wondering if your paid leave program is comparable to that of your competitors, there is likely benchmark data available. If you’re interested in benchmarking information for your industry, feel free to reach out at 219.510.6207 or [email protected]. + BY: ERIC GIBSON GROUP BENEFITS EXECUTIVE, GENERAL INSURANCE SERVICES Eric Gibson has been with General Insurance Services for nearly five years, where he specializes in group benefits for organizations of all sizes. Outside of the office, Eric enjoys spending time with his wife, Sidney, and daughter, Zoey. 5