Nearly a third or 32 per cent of employers with overseas staff do not benchmark their employee benefits, according to Towergate Health & Protection.
According to Towergate Health & Protection, businesses that employ overseas workers typically benchmark by the size of the organisation, with 41 per cent doing so, and by geographic region, with 45 per cent utilising this approach. It is less common to benchmark by industry sector, with only 28 per cent choosing this method.
Additionally, most businesses with employees working abroad understand the importance of benchmarking when it comes to hiring and retaining talent, with 57 per cent recognising its value.
Furthermore, 37 per cent of these businesses use benchmarking as a reference when deciding how much to spend on benefits.
Concerns about costs or lack of clarity on the procedure were among the reasons given by nearly one in four firms, accounting for 25 per cent of them, for not benchmarking benefits.
Towergate Health says that while size and geography-based benchmarking makes sense, industry-specific benchmarking should also not be disregarded, as many businesses focus their recruiting and retention efforts on particular industries and need to know how to successfully compete 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.”
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