How to overcome the challenges of global benefits benchmarking
With 45% of global employees saying they want more flexible benefits options, flexibility and choice are essential in any benefits strategy.
For HR and reward teams, ensuring global benefits remain competitive isn’t just about offering attractive perks – benefits are a strategic lever that drive employee engagement, retention and satisfaction.
Yet, understanding how your benefits compare to other organisations isn’t always straightforward. The key is reliable, well-interpreted data.
Benchmarking offers critical insights into industry standards and employee expectations of benefits in each country, but sourcing local data, making meaningful comparisons, and drawing conclusions is a significant undertaking that requires expertise.
Without a structured approach, companies risk investing in benefits employees don’t value or leaving gaps in their offering.
So, how can companies effectively benchmark their global benefits?
Here are three key challenges and how to overcome them.
1: Finding and consolidating data
Many organisations struggle to get a clear picture of their existing benefits, with data often fragmented across local teams, HR systems, and paperwork.
Mergers and acquisitions further complicate matters, resulting in disconnected programmes with little oversight for global HR and reward leaders.
Start with an internal audit and identify who holds your organisation’s benefits data – is it HR teams, payroll providers, or brokers?
A global benefits platform can centralise these data sources and help you align benefits with company values and strategic goals.
Samantha Sergent at Microsoft says: “We started this project by just asking the right questions and documenting things.
“We’ve had to go back and challenge our policies at a leadership level. But what this process is allowing us to do is highlight where there are inconsistencies.”
Additionally, employee surveys and focus groups provide insights beyond existing benefits, helping gauge employee perceptions and engagement with their package.
A benefit is only valuable if employees use and appreciate it.
Top tip: Don’t forget the perks
Take a wider view of what qualifies as a benefit – for example, transport to a factory or a canteen perk is also part of your offering.
Beyond core offerings, perks like gym memberships, flexible allowances, and voluntary benefits are essential to creating an attractive package.
Your global platform provider should be able to help you capture all relevant data to get a comprehensive view of your benefits landscape (many organisations undertake benchmarking as part of their global benefits technology rollout process).
2: Comparing your benefits to the market
Once data is gathered, companies can struggle with knowing how their benefits compare.
Should they benchmark against industry peers, or local businesses or other multinational corporations?
The wrong comparisons can result in misleading conclusions.
To get an accurate market view, benchmark benefits at multiple levels:
- Companies within the same sector often compete for the same talent pool, making sector-based benchmarking valuable.
- Some industries, like financial services and tech, compete for similar employee skillsets, so cross-sector benchmarking may be necessary.
- Compare benefits by workforce demographics (job level, location, deskless vs. office-based) to ensure your offering meets diverse needs.
Market data on benefits popularity doesn’t always tell the full story – what matters is if employees value those benefits.
External benchmarking should include insights on uptake and satisfaction, not just benefits availability.
A combination of external reports, market research, and expert analysis is needed to turn benchmarking data into actionable insights.
Top tip: Don’t overlook communication
Even if a company offers competitive benefits, employees may not value them if they don’t understand them.
With a widening disconnect between what employers and their people think of the employee experience, benchmarking can reveal whether the issue is the benefits themselves or how they’re communicated.
3: Securing internal buy-in for change
HR teams often recognise when their benefits aren’t competitive, but frequently struggle to secure leadership approval for changes.
Without comprehensive data, justifying budget approvals can be difficult.
Demonstrating how well-benchmarked benefits can help the organisation achieve strategic goals – like employee engagement, productivity and loyalty – strengthens the case for leadership approval.
From a financial perspective, benchmarking also supports long-term cost-effective decision making by ensuring investments are directed toward benefits employees truly appreciate, maximising ROI and preventing overspending on underutilised benefits.
Top tip: A benchmarking report can help you secure investment
A comprehensive benchmarking report provides the data-driven insights needed to justify benefits investments.
A strong business case, backed by external expertise, bolsters credibility and helps HR teams secure the leadership buy-in they need when presenting findings to finance and executive stakeholders.
Making benchmarking work for you
Benchmarking isn’t a one-time task; it’s an ongoing strategy.
Although a full benchmarking review every three to five years can be costly and time-consuming, conducting a thorough review first time around – and acting on the insights gained – means reviews can be smaller and more efficient.
The key is future-proofing – using benchmarking data to plan ahead, refine budgets, and introduce new benefits before they become outdated.
A strategic approach to benchmarking helps prevent costly missteps and keeps benefits aligned with changing employee needs.
Regular reviews allow businesses to maintain a competitive edge and continue meeting employee expectations.
Contact Benifex here.
Supplied by REBA Associate Member, Benifex
The home of award-winning employee benefits, reward, recognition, & communications.
