The benchmarking advantage: A benefit management tool

In any business you have to know where you are, before you know where you are going.
By Owen Parker Nick Kovacs
|CHRR, Guide to Pensions & Benefits|Last Updated: 06/27/2001

Competitive benefit plans can be attraction and retention tools. So, given today’s highly competitive environment, organizations are constantly faced with having to review their benefits program. Invariably questions arise: “where do I begin?” and “how can I be sure of the validity of the data reviewed or that it is truly representative?”

Human resource professionals want to be confident that any benefit design change arising out of analysis conforms to standard practices, or that any benefit changes that deviate from the standards will be perceived as leading edge in the marketplace.

While several methods exist for determining which benefit practices exist in other organizations, including relying on personal knowledge and experiences or reviews of current journals, these tend to be more anecdotal than objective. The best practice in undertaking benefit reviews is to benchmark — it is the most preferred and effective means for comparing the plans of one organization with those of other organizations.