I’ve written before about why SMEs should be offering private medical cover to their employees. Employee benefits, including perks like income protection, critical illness cover and medical insurance, are one way that small and medium-sized businesses can compete in the race for talent. That’s because they are attractive to employees; underline a company’s image as an employer that cares; and help reduce staff turnover.
However, businesses shouldn’t just implement employee benefits packages and assume they are delivering a return on their investment. It’s important to measure results against set objectives and business goals.
But gauging the success of benefits packages is often tricky for many businesses because they simply don’t know what to measure. Here are some things to consider:
1. Have a benchmark
Before you can even begin measuring the success of your employee benefits packages, you need to understand where you are at present, i.e. before the employee benefits have been implemented. Without ‘before’ and ‘after’ data, you’ll never know what impact your benefits package has had.
2. Focus on outcomes
While finance directors usually want to see a definitive ROI along the lines of: For every £1 spent we’ve seen a return of between £4 and £6, it’s often difficult to provide such figures when looking at the impact of employee benefits packages. That’s way it’s usually best to focus on outcomes instead of out and out financial ROI.
3. Employee engagement
By implementing the right employee benefits, businesses can boost employee engagement. Now while it’s always been quite tricky to measure employee engagement because it’s such a complex factor, there are a handful of metrics that you can focus on, such as attendance rates (higher engagement leads to better attendance), average hours worked (to determine overtime) and conversion rates (more engaged employees generally perform better in their roles).
Suggestion boxes, pulse surveys, one-to-one meetings and employee Net Promoter Scores can also be used to gauge things like satisfaction, loyalty and morale.
4. Staff turnover
Another pretty accurate way to measure the impact your employee benefits packages are having is by looking at staff turnover levels. In theory, the right benefits package should lead to improved morale, better engagement and, in turn, lower levels of staff turnover.
This is again why it’s important to understand the lay of the land before you implement any new benefits. Otherwise you won’t know what impact they have had because you have nothing to measure your new data against.
5. Absence levels
While it’s inevitable that your employees will take time off because they are ill, your overall absence levels should go down if the employee benefits you’ve implemented are right and well received. That’s because happy, engaged employees are less likely to call in sick in 50/50 situations, i.e. they are likely to still come into work when feeling a little under the weather because they don’t want to let anyone down and genuinely enjoy their jobs.
Contact us today to find out how we can help you create a benefits package that’s right for both you and your employees.
Tom is the Sales Director for Premier Choice Group. In his role, Tom oversee’s growth across all areas of the business while maintaining a small number of his own clients. At Premier Choice, Tom and the team deliver a unique, personal service to every client, while growing the business and maintaining a strong reputation as the UK’s best intermediary.