One of the key aspects of maintaining a competitive edge in the job market today is offering attractive benefits to your employees. According to research, 78% of job seekers would be more likely to apply for a job if the benefits were on offer. Not only do benefits play a role in attracting top talent, but they help to retain existing employees. However, it’s important that any benefits package aligns with your business objectives and so conducting a benefits review is essential.
Why conduct a benefits review?
A benefits review isn’t just a paperwork/tick box exercise. It’s actually a strategic evaluation that can benefit your business:
- Measuring employee satisfaction: ensuring that the benefits on offer meet the expectations of your staff can lead to a happier and more motivated workforce. This is also likely to have a positive impact on staff retention.
- Attracting high-quality candidates: a great benefits package can be a powerful recruitment tool. It can also set you apart from competitors.
- Identifying potential cost-savings: conducting a review can help you identify where potential savings can be made and judge the effectiveness of the benefits on offer.
When to conduct a benefits review
A benefits review should ideally be conducted on an annual basis. However, there may be times when specific events trigger the need for a review. These include:
- Growth in the business: question whether the benefits package is scalable and if it can continue to meet the needs of the team as it grows?
- Budgets: if there are budgetary constraints then reviewing the benefits package can help to identify cost-savings without compromising on the quality of the benefits on offer.
- Legal changes: for example, any changes in employment law or tax that could mean your benefits are not compliant.
- Feedback from staff: it’s always essential to gather feedback from staff (through surveys or discussions) as these can highlight issues or any areas for improvement.
How to conduct a benefits review
There are multiple steps to follow when conducting a benefits review.
- Gather the data
This will include all the data and information about your current benefits plan, the demographics of your employees and the costs.
- Identify the objectives
Clear objectives need to be set for a benefits review. These could include:
- Ensuring that the business is offering competitive benefits to attract and retain talent.
- Ensuring that the benefits are within budget.
- Ensuring that the benefits are legally compliant.
- Identifying how employee satisfaction is measured in association with the benefits package.
- Analyse employee requirements
Through feedback, understand what your employees value the most so that you can align the package with these and meet expectations.
- Look at the costs
There are expenses to look at in relation to each benefit, including insurance premiums and retirement plan contributions.
- Ensure they are legally compliant
All benefits packages will need to comply with employment law.
- Benchmark against your competitors
Examine competitor offerings and general industry standards to ensure that your package is competitive and attractive.
- Communicate with staff
If you’re proposing to make changes to your benefits staff it’s important to communicate this with your employees. Transparency is essential to maintain trust and loyalty among employees.
- Monitor and adapt
It’s useful to regularly monitor the impact of your benefits package and any changes made in line with your objectives.
Remember, an effective benefits package not only attracts and retains top talent, but also contributes to a motivated and satisfied team, ultimately benefiting your bottom line.