Benchmarking Employee Benefits: How Competitive Is Your Package?
- Excellect
- Oct 24
- 3 min read
Why understanding how your benefits compare can help you attract, retain, and engage great people
When was the last time you compared your employee benefits package to others in your industry?
For many businesses, benefits are something that evolve over time - added to, adjusted, or renewed without ever stepping back to ask:
“Is this still competitive? Is it still what our people value?”
That’s where employee benefits benchmarking comes in.
It’s the process of measuring your benefits against the market - not just to check costs, but to understand how your package stacks up in terms of value, engagement, and attraction.
At Excellect, we help businesses of all sizes benchmark their benefits, giving leaders the insight they need to make confident, evidence-based decisions.
What Is Employee Benefits Benchmarking?
Benchmarking means comparing your current benefits offering to what’s typical for your industry, size, or region.
It looks at both:
The numbers — what benefits are offered, how much they cost, and who’s eligible.
The experience — how employees use and perceive those benefits.
The goal isn’t just to “match the market” - it’s to ensure your benefits reflect your people, your culture, and your strategic goals.
Why Benchmarking Matters
1. Stay Competitive in a Changing Market
Employee expectations are rising. What was considered generous five years ago might now be standard - or even outdated.
Benchmarking helps you stay ahead of the curve.
2. Support Recruitment and Retention
Candidates compare more than just salary.
A competitive benefits package can be the deciding factor when choosing between employers.
3. Improve ROI on Existing Spend
You may already be investing significantly in benefits - but are employees using them?
Benchmarking helps you spot underused schemes and reallocate budgets effectively.
4. Guide Fairness and Equality
If different teams or acquired companies have unequal benefits, benchmarking gives you a data-driven starting point to harmonise them fairly.
5. Future-Proof Your Offering
Understanding trends helps you plan ahead - whether that’s digital wellbeing, financial education, or flexible benefits platforms.
What a Benchmarking Review Includes
A proper benchmarking review doesn’t just compare prices - it provides a complete picture.
At Excellect, our benchmarking process includes:
Full Review of Current Benefits – what you offer, what it costs, and who’s covered.
Market Comparison – analysis of comparable businesses in your sector, region, and size.
Usage Insights – how often benefits are being used and what employees value most.
Gap Analysis – identifying missing benefits or outdated structures.
Recommendations – practical next steps to improve value, engagement, and cost-efficiency.
A Practical Example
Imagine a 150-person professional services firm with long-standing group life and PMI cover, but no mental health or lifestyle benefits.
After benchmarking, they discover:
70% of similar firms now offer EAPs
55% have introduced Health Cash Plans
Average employer spend on wellbeing benefits has increased 18% in three years
Armed with that insight, they decide to add an EAP and promote existing benefits more clearly - achieving higher engagement with no major cost increase.
When to Benchmark Your Benefits
Benchmarking is valuable at any time, but especially when:
You’re reviewing or renewing existing schemes
You’ve recently merged, acquired, or restructured
You’re planning a recruitment drive or retention strategy
You’re considering a flexible benefits platform or wellbeing refresh
Even a simple annual review can reveal insights that protect your competitiveness and help guide next year’s strategy.
Final Thoughts
Employee benefits are one of the biggest investments many businesses make in their people - but without benchmarking, it’s hard to know if that investment is paying off.
By reviewing how your benefits compare with others in your industry, you can make confident, informed decisions that support both your business and your employees.
At Excellect, we combine real market data with hands-on consultancy to help businesses modernise, optimise, and communicate their benefits effectively.
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