According to Wikipedia, benchmarking is the process of comparing one’s business processes and performance metrics to industry bests or best practices from other industries. In the context of group insurance or health and wellness benefits, benchmarking surveys and relative value indices have traditionally been the domain of corporate HR. Benchmarking reports provide a comparison of one benefit plan against a comparable universe of plans. Some would argue that looking at what everyone else offers is equivalent to driving using only your rear view mirror, which could in turn, encourage mediocrity. However, benchmarking a benefits plan can provide several insights into a plan, engaging key stakeholders and ultimately:
- improving understanding of real priorities and opportunities of each program;
- minimizing disagreement around the true objectives of programs; and
- promoting discussion based on data rather than assumptions.
Regardless of whether comparisons are used to change or to justify a lack of change, benchmarking reports have become the standard tool for benefit plan management.
For the complete article in PDF format: It’s Time for Another Look at Benchmarking.
To learn more about PBI’s benchmarking studies visit http://pbibenchmarking.ca/