How to Measure the Effectiveness of Your Employee Benefits Package
From tracking important metrics to asking for feedback consistently, here are four answers to the question, “How does your company evaluate and measure the effectiveness of the employee benefits package?”
- Use Employee KPIs
- Survey Employees
- Track Employee Turnover Rate
- Seek Regular Feedback
Use Employee KPIs
Using employees’ key performance indicators is the most important aspect of evaluating and measuring the effectiveness of the employee benefits package. It’s not easy to figure out employee engagement in a company. But with the help of setting employee key performance indicators, you can easily evaluate the effectiveness or outcome. That will make your next move highly effective.
Your company gets invaluable insights into the outcomes of employee benefits processes. Measurable indicators save time and effort and help to understand the outcomes. These indicators are the average task completion rate, revenue per employee, overtime per employee, profit per employee, and employee capacity.
For setting the smart KPIs, you should be clear about each KPI, why it’s important, and they should be measurable to defined standards, should improve performance, and be achievable within the agreed time frame. If you focus on these points, you can create impeccable KPIs.
Saikat Ghosh, Associate Director of HR and Business, Technource
Survey Employees
My company evaluates and measures the effectiveness of its employee benefits package in various ways.
One step in evaluating the effectiveness of the employee benefits package is to survey employees and gather feedback on their satisfaction with the benefits offered. Companies can use surveys to understand how employees use the benefits, what they find valuable, and what they would like to see improved. The feedback can make informed decisions about changes or additions to the benefits package.
Another approach we use is to ask open-ended questions that allow employees to provide more detailed feedback, such as what benefits they use most frequently or what they would like to see added to the package.
David Reid, Sales Director, VEM Tooling
Track Employee Turnover Rate
At ParcelPanel, we gauge the effectiveness of our employee benefits packages by tracking the turnover rate over a given period.
By default, our best talent will want to stay with our company if we offer a competitive benefits package that boosts their morale and guarantees job security in an uncertain economy. On the flip side, a high turnover rate means we are not doing it right and need to review the benefits package.
Liam Liu, Co-founder and CMO, ParcelPanel
Seek Regular Feedback
It is important to offer a comprehensive benefits package, and equally important to evaluate the package regularly to ensure that it remains relevant and valuable to employees.
One way to do this is to seek regular feedback from employees. However, it’s important to balance gathering feedback frequently enough to make meaningful changes, but not so often that employees become annoyed or feel like their opinions are not being heard.
Regular feedback can provide valuable insights into what benefits employees find most valuable and what they would like to see added or improved. This information can help organizations make strategic decisions about their benefits packages and tailor them to the specific needs and preferences of their workforce.
Lilia Koss, Community Manager, Facialteam