Around 32% of employers with international staff do not benchmark their employee benefits, according to Towergate Health & Protection.
Towergate Health & Protection reports that companies employing overseas workers often use size-based benchmarking, with 41% adopting this method, and geographic region-based benchmarking, with 45% preferring this approach. Benchmarking by industry sector is less common, with only 28% opting for this strategy.
Moreover, a majority of businesses with overseas employees acknowledge the significance of benchmarking in talent acquisition and retention, with 57% appreciating its value.
Additionally, 37% of these businesses rely on benchmarking to determine their benefit expenditure.
Around one in four companies, comprising 25%, cited cost concerns or procedural uncertainties as reasons for not engaging in benefit benchmarking.
Towergate Health emphasises that although size and geography-based benchmarking are logical, it’s equally important not to overlook industry-specific benchmarking. Many businesses concentrate their recruitment and retention efforts on specific industries and must understand how to compete effectively in those markets.
Towergate Health & Protection head of international Sarah Dennis says: “Benchmarking can be an incredibly useful way to ensure a company offers the most appropriate and effective benefits to employees, which can also help with recruitment and retention. While many employers with overseas staff clearly see the value in benchmarking, more could benefit from it being more comprehensive.
“There are good reasons for companies with staff abroad being inclined to benchmark their benefits, particularly as they compete for talent. However, they need to make sure they are benchmarking the right indicators, and not limiting themselves to location and size of company alone. Benchmarking is a very useful way to achieve a really clear picture of where and how to apply benefits spend to create real value for money: always a critical factor for every company.”