How Often Should Businesses Conduct Benefits Benchmarking?

Benefits benchmarking refers to comparing a business’s employee benefits packages with those offered by companies in similar geographic locations or industries.

This process can help a business stay competitive, attract talent, and personalize its benefits package to meet market expectations. However, benefits benchmarking isn’t a one-time task and should be performed regularly.

Here are some things to consider when determining how often your business should conduct benefits benchmarking.

Frequency of Benefits Benchmarking

How often a business performs benefits benchmarking can impact its industry competitiveness and overall ROI. Ideally, a business should perform benefits benchmarking at least once a year to stay informed about industry standards and align benefits with employee expectations.

Industry Standards

Industries approach benefits benchmarking differently based on their specific contexts and needs. This process generally involves a research and analysis phase in which consultants or HR teams research industry reports, data, and surveys from relevant sources to understand benefits trends better.

Internal surveys, peer group comparisons, and consulting services can also be useful in determining how businesses in different sectors can conduct benefits benchmarking to meet industry standards and regulatory obligations.

Factors Influencing Frequency

Many factors, such as economic conditions, influence how often a business should conduct benefits benchmarking. Industries that are vulnerable to economic fluctuations may adjust their benchmarking frequency to capitalize on growth periods and reduce spending during downturns.

Industry dynamics and regulatory changes can also influence benchmarking frequency. Industries that experience rapid changes in workforce demographics may need to perform benchmarking more often to stay agile. In contrast, those subject to frequent regulatory updates may benchmark more regularly to stay compliant and competitive.

Primary Indicators That It’s Time to Benchmark

By regularly benchmarking benefits and assessing target indicators accordingly, businesses can keep their benefits packages cost-effective, competitive, and aligned with market standards and employee needs.

The following target indicators can show businesses that it’s time to conduct a benefits benchmark:

Market Changes

Market changes, such as economic shifts, industry standards, and new benefit trends, are common signs that benchmarking is needed. Periods of low unemployment or economic downturns can affect the ability of skilled workers. During tight labor markets, businesses may need to offer more attractive benefits to retain workers.

Industry-specific standards and benefits trends can also change over time. Staying informed on changes to benefits within your industry can help keep your business’s benefits package attractive to current and prospective employees.

Regulatory Changes

Regulatory changes can also help businesses determine the best time to benchmark. Changes in laws or regulations relating to employee benefits, such as leave policies, retirement plans, and healthcare mandates, may require businesses to adjust their benefits package.

The benchmarking process can help businesses meet compliance with new regulations while remaining competitive.

Internal Triggers

When deciding when to benchmark, consider internal factors such as employee turnover, especially concerning demographic changes. When changes in the demographic composition of a workplace occur, such as the influx of younger workers, benefits offerings should be adjusted to meet the assorted needs of different generations.

Other internal triggers, such as feedback from employee surveys and changes in the company structure or strategy, should also be considered. Shifts in a business’s strategy, such as an expansion into a new market, may necessitate modifications to benefit offerings to support these new business objectives.

Benefits of Regular Benchmarking

Benchmarking offers numerous benefits to businesses looking to improve their operations. Benchmarking against top performers and best practices in the industry helps businesses set realistic performance goals.

This process can also reveal opportunities for innovation, such as technologies that competitors are using successfully. Other benefits of regular benchmarking include:

Competitive Edge

Benchmarking gives businesses a competitive advantage by identifying areas where they could be lagging and opportunities for improvement.

Comparing your processes, practices, and performance against industry leaders and competitors can give businesses data-driven insights that support informed decision-making and contribute to long-term growth and success.

Employee Satisfaction and Retention

Benchmarking can contribute to employee satisfaction and retention by addressing common factors affecting how employees perceive and interact with their workplace.

Communication and feedback are essential to benchmarking, which can help support a healthy work environment and increase employee morale. Employees who are satisfied with their benefits and work environment are likelier to stay, leading to higher retention rates.

Trust New City for Your Benefits Benchmarking Strategy

Creating a benefits benchmarking strategy can help your business nurture a loyal workforce and succeed in a competitive market. At New City Insurance, we use proven strategies, such as benefits benchmarking, to help increase your employee benefits cost savings and keep your business competitive.

Justin Hoffman

02:52 17 Oct 24

Always quick to respond. This team is up early and late.

Roger

16:30 30 Aug 24

Eric Calciano, is as sharp and knowledgeable about health benefits and insurance, as anyone I've ever come across. If you need any kind of benefits analysis I highly recommend him and his firm. He is easy to work with and highly professional.

Timothy Burke

04:02 30 Aug 24

I don't leave reviews often, but this one is well deserved and overdue. Clayton provided services to my company prior to his move into the insurance world a few years ago. Always being incredibly impressed with his talent and strong communication skills, I decided to switch our insurance broker and give New City a shot. That turned out to be a great move.The first year, Clayton actually jumped on a plane and flew from Oregon to California just to be onsite and administer open enrollment for my 45 employees. Clayton, Eric, Jeff, Brendan, and the entire team have been a pleasure to work with over the years. The communication, response time, and insurance knowledge is second to none in my opinion. A legitimate 10/10. They are great listeners and strive to really understand the needs of their customers.I'm very selective about giving referrals and making recommendations, but New City has never disappointed. If you are reading these reviews to help make your decision on selecting an insurance broker, this team is 100% a solid option. And if you don't believe me, just look at the other reviews.

Megan Ketter

19:48 28 Aug 24

Excellent customer service. Brendan and team are professional, timely, and so appreciated when navigating this complicated insurance world. Very thankfully for them! Highly recommended.

Ailene Chow

23:15 26 Sep 23

We have been working with New City Insurance since 2019 at the start of our company and has not look back since. They are responsive and proactive when it comes to advise and also market analysis on what's there in the marketplace. Unfortunately insurance benefits costs has been increasing yearly with differences in the percentage of increase . The New City folks reaches out months before the impending increase takes places and help relook into options or recommendations that they see fit. We were a company of 2 to now 7 permanent staff . While we are small , this company still takes care of us well.

Carol Zhang

04:29 06 Mar 22

As a rapidly expanding national media organization, the employee benefits strategy and administration that New City has provided us during our growth has been invaluable. They have been proactive about informing us of the different benefit strategies available to us as we grow as well as managing the additional compliance laws and reporting requirements at each stage of our growth.

Claudia Villalobos

20:14 03 Mar 22

New City Insurance made navigating through all the health insurances super EASY. Their documents are highly informative, professional, and easy to work with. Thank you for making the process of choosing a health plan so simple. You guys are THE BEST!

Philippe Salas

17:02 22 Feb 22

I never expected to have a good time talking to an insurance salesman, but let me tell you Brendan was quite the treat. He was very helpful explaining the options and has a wonderful sense of humor. I hope to speak with him every time I call.

Jennifer Polito

17:15 09 Feb 22

Super easy enrollment process. Fast and friendly customer service. If you are looking for an insurance company that is there for you every step of the way I highly recommend New City Insurance.

Rocky Salas

23:46 07 Jan 22

So friendly, I hope to speak to him again in all my future insurance needs.

23:38 07 Jan 22

So friendly and soft spoken. I hope to speak to him again in all my future insurance needs.

Jose Brena

13:20 06 Jan 22

Eric Calciano has been extremely helpful in finding and selecting the right insurance coverage for our company. With many options out there Eric assisted us on getting a low cost provider saving more than 20% than from our competitors and providing excellent coverage for our employees.

Anastasia Beaverhousen

17:05 28 Dec 21

Signing up for insurance was quick and easy. Felicity Sundsboe

SFCC

22:08 29 Nov 21

Jeff Stoltey and his team provide excellent customer service. Jeff has always provided my company SFCC with straightforward options. I went to a larger insurance company only to RUN BACK to Jeff at New City Insurance. I recommend them to anyone needing insurance without hesitation.

Kevin Luby

19:13 22 Oct 21

Quick, easy & informative. We were able to secure quality insurance for our small business on a tight deadline. Thanks for the help New City.

Theresa Ruybol

19:30 01 Jul 21

Eric was so great with us. He was very patient and kind as we are a newer smaller organization who is growing rapidly. With that said, we had made our inquiry, he had great rapid response and mostly had to wait on me. Any request that we made and/or questions we had, he was great answering and helping us understand. Then when we were ready for all documents and to move forward, Brendan helped with getting that together and the two of them worked their magic on New City's end to notify me of what was needed, assist me in that process and confirming that all was complete and approved for the coverage. I just want to say thank you all again so much, as insurance has always been confusing to me, and you all made that process go a lot smoother.Thank you

Andrea Ordendorff

21:06 07 May 21

I've been working with both Clayton and Brendan for well over a year. As the purchase of our dental practice was delayed well over 14 months they both patiently supported me and continued to make themselves available. When we were officially ready to sign up they made the whole process seamless and super easy. This team is highly knowledgeable, professional, supportive, and efficient! I can't thank them enough for everything they've done.

T W

22:32 30 Aug 20

I love New City Insurance. I never had a good experience dealing with insurance brokers until I started working with Brendan. He’s awesome! He is patient with me and takes the time to answer all my questions. I’m very grateful for all his help and hard work!

Mary Jane Deyette

00:57 11 May 20

Jeff Stoltey is so awesome...even thru my company had only two employees, he took the time each year to research and find the best plan for us. The only reason I am leaving New City Insurance is because we no longer have any employees. Thank you Jeff

Alma Ortiz

22:25 23 Feb 20

Brendan was awesome! I couldn't figure out how to pick my plan and he returned my call on a weekend to help me. Outstansing service!

jessica kavanagh

19:53 13 Feb 20

Brendan was so helpful I definitely recommend him if you’re in need of good help and getting it done promptly. Thankyou so much again.

Tricia DeYoung

19:49 13 Feb 20

I was very thankful I inquired about this info. with Brendan. He was very helpful so I understand the benefits available much better now. Thank you Brendan.

B Bayer

17:43 24 Sep 19

NCI handled almost everything from start to finish. Clayton and Brendan made the plans easy to understand and walked me through the application process. They got me my ID numbers before my cards arrived so that I could keep an appointment I had already scheduled. My last broker wouldn't have done that. 5 stars!

Jessica Lehr

03:36 07 Jun 19

Our staff was interested in a health plan, but we didn't know how beneficial a solid employee benefits package would be for our business to expand. We'd lose prospective employees because they had more options for their medical insurance which was sometimes more valuable than more pay. The New City team was amazing and gave us as many affordable options as possible so that everyone had their needs met.

Mike McClay

19:36 03 May 19

My employer uses New City as their insurance broker, and I'm always amazed when I call in for assistance by how knowledgeable and attentive their staff is with my requests. Their online benefits platform makes selecting insurance plans pretty darn easy. I would highly recommend their services.