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[Free Download] Using Industry Benchmarking to Create Competitive Benefits Plans 

By: Benefits by Design | Tuesday February 22, 2022

Updated : Thursday July 7, 2022

At Benefits by Design (BBD) Inc., we often deal with small business employers looking to provide a benefits plan to their employees for the very first time. With no prior experience in offering benefits, it can be difficult to know where to begin. 

That’s where industry benchmarking comes into play! 

Download the Employee Benefits Benchmarking Report (PDF: 314 KB)

What is Benchmarking? 

A benchmark serves as a baseline in which to evaluate performance, acting as a method of comparison for what is “standard”.  

Applied to group insurance, a benchmark might be a report on what the average employer in [insert your industry here] provides to their employees. This allows you to be at least on par with your competition, and perhaps even preferable by including additional highly sought-after coverages. 

Using Industry Benchmarking to Create Competitive Benefits Plans 

When creating an employee benefits plan, using industry benchmarks will yield valuable insights to aid your decision making. 

Getting Started in Group Employee Benefits with the BBD Starter Plan

Example Benchmarking and How to Draw Conclusions 

Let’s take a look at some example benchmarks and showcase the kinds of conclusions that can be drawn to create better, more competitive benefits plans. 

Growth of Employee Assistance Programs (EAP)s

The growth of EAPs has been an observable trend for some time now. In fact, we’ve seen consistent, year-over-year growth in the number of employers with EAPs on their plans over the last three years. Based on our own block of business, here’s how EAPs have grown:

Among those, there are three standout industries who take EAPs most often: Finance & Insurance, Professional, Scientific & Technical Services, and Health Care & Social Assistance. Employers within those fields may need to strongly consider EAPs as part of their benefits offerings in order to remain competitive and meet the expectations and needs of employees!

Long Term Disability (LTD) Insurance Within the Construction Industry

Recently, we engaged in some targeted industry benchmarking exercises and analyzed our own block of business, looking for trends within industries. Below is a glance at construction companies within British Columbia, where you’ll see that construction companies have a noticeably higher uptake in LTD (66%) than the average (47%) within our entire block of business (across all industries).

Using this knowledge, employers and their Advisors might consider looking more seriously at LTD coverage as a means of remaining competitive amongst similar companies (as well as keeping employees financially secure in a dangerous industry).

Want to Use Benchmarking Strategically?

Benchmarking can be a powerful tool to see where you stack up against the “average”. When applied to benefits, utilizing industry benchmarks can provide valuable insights like those above to begin discussions, inform decisions, and ultimately create a better, more competitive benefits offering.

Download the Benchmarking Report for small- to medium-sized businesses and see where you stack up against the competition!

Download the Benchmarking Report (PDF: 314 KB)