Benefits Metrics
Before we explore Benefits Metrics, it is important to revisit "what is a metric". We should be viewing each measure carefully to determine if it is or is not a metric.
What's a metric?
- A measured result associated with an objective(s)
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- Drives continuous performance improvement
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- Should be limited to 3-5 for any specific objective or outcome
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- Is fair to Human Resources
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Developing Your Benefits Metrics
To effectively establish your benefits metrics, be sure to align your metrics to your company's key objectives regarding benefits.
Sample Benefits Objective - Competitive benefits efficiency that supports the attraction and retention of key employees
Sample Benefits Metrics
- 90% benefits satisfaction rating by key employees
- No greater than 5% of top-performing employees resign for benefits related reasons
- 85% benefits satisfaction rating among key applicants
- 90% utilization of benefits by key employees
What are the most common objectives of companies regarding benefits? Is there commonality among companies?
Do your metrics support your company objectives?
What are your company's benefits objectives and metrics? Share them with us so we can share them with the group and learn from each other.
Common Benefits Metrics
Below is a sample list of other metrics that organizations have used in relation to benefits. Be sure to reference what is a metric above when analyzing these metrics. Do you currently measure benefits differently? Contact us so that we may share your experience with the group.
- Healthcare Cost Per Employee = Total Cost of Healthcare ÷ Total # of Employees
- Benefits Satisfaction = % of employees satisfied with current benefits
- Benefits as a % of salary = Annual Benefits Cost ÷ Annual Salary
- Benefit Revenue Ratio = Total Benefit Costs ÷ Revenue
Do any of the metrics above support your "Benefits" objectives? Benefits almost always seem to be measured in terms of cost alone. As a part of compensation, are benefits meant to attract and retain employees and meet an employees welfare and social objectives? If so, benefits should not be viewed as a cost alone. They should be viewed in their ability to attract and retain employees as well as provide value.
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| **Portions of information on this page may have been derived from the HRMetrics Certification Program which was originally developed by Staffing.org. Copyright © 2006, Staffing.org, Inc., All Rights Reserved |
