Many businesses put their employee benefits package together and assume that it’s doing everything it needs to – but how do you know if you’re delivering a good benefits ROI?
It’s something we encounter often with prospective clients at Zhoosh – on the surface, their benefits package might look OK, but dig into the engagement metrics and you’ll often find an unengaged workforce and a bunch of wasted spend.
Too often, businesses offer benefits without measuring their impact, leading to wasted resources and missed opportunities to boost engagement, retention, and overall business performance.
Let’s look at the stats;
HOW TO ANALYSE YOUR EMPLOYEE BENEFITS ROI;
1. Employee Engagement and Satisfaction surveys
If your benefits are great, your people will tell you.
We recommend conducting regular surveys to understand which benefits are valued and which ones are underutilised.
Top Benefit ROI Metrics to Track:
- Employee satisfaction scores from benefits surveys
- Utilisation rates across your different benefits
- Feedback from exit interviews
2. Impact on Retention and Recruitment
According to a Glassdoor study, 60% of job seekers consider benefits and perks before accepting a job offer. So if you’re failing to hire your dream candidates or struggling to hold on to your top talent, it might be time to re-evaluate what you’ve put on the table.
Top Benefit ROI Metrics to Track:
- Employee turnover rate before and after introducing/improving benefits
- Cost per hire and time-to-fill vacancies
- Percentage of candidates citing benefits as a reason for joining
3. Absenteeism and Productivity Trends
Employee wellbeing directly impacts productivity and attendance. A well-structured benefits package with health, wellness, and flexible working options can reduce sick days and boost performance. If absenteeism is rising despite offering wellness benefits, it may be time to assess their relevance and effectiveness.
Top Benefit ROI Metrics to Track:
- Average sick days taken per employee
- Productivity levels pre- and post-implementation of key benefits
- Usage of mental health and wellness programs
4. Financial ROI and Cost Savings
Many benefits, particularly salary sacrifice schemes like pension contributions, Cycle2Work, and Electric Vehicle schemes, provide cost savings for employees AND employers. Tracking the financial impact of your benefits package can help ensure you’re maximising savings while delivering true benefits ROI and also value to your team.
Top Benefit ROI Metrics to Track:
- Employer NIC savings from salary sacrifice schemes
- Cost vs. value analysis of benefits offered
- Reduction in recruitment and training costs due to improved retention
5. Alignment with Business Goals and Culture
Your benefits package should support broader business goals, such as employee well-being, diversity and inclusion, or sustainability. For example, if your company prioritises environmental initiatives, offering sustainable benefits like Electric Vehicle leasing and Cycle2Work can reinforce your brand’s values.
FOCUS ON;
- Alignment of benefits with the company’s mission and employee needs
- Employee feedback on whether benefits reflect the company culture
- Brand perception as an employer of choice
Final Thoughts: Continuous Assessment of your benefit roi is Key
Employee benefits are not a “set it and forget it” investment. Regularly reviewing your offering, soliciting feedback, and tracking relevant data ensures you provide meaningful employee support while maximising ROI. If certain benefits aren’t delivering, it may be time to pivot and invest in perks that genuinely make a difference.
Want to assess your benefits ROI more effectively? Start by gathering employee feedback and benchmarking against industry standards. A benefits package that evolves with employee needs is the key to long-term success.
And if you need help improving your benefits offering, Zhoosh is here to help.
