Few employers measure benefits impact

Only 20% of medium to large employers measure the return on investment (ROI) of their employee benefits programme, according to data from Aon Employee Benefits. Further, while 80% of employers state that benchmarking is key, a fifth are unsure about the sector against which they should benchmark.

Companies typically lack a clear strategy for the benefits programme, such as setting appropriate objectives and linking them to the business case, and ROI is often overlooked.

Jeff Fox, principal at Aon Employee Benefits, said:

‘It is normal for many organisations to say they need positive ROI from their benefits programme, especially when it comes to tax efficiency. We understand that HR is managing a complex process to attract and retain skilled employees in a highly-competitive labour market while keeping costs under control, but when we ask if they know what their ROI is, the answer is usually no, or that they don’t know how to measure it.’

‘The Benefits Score’ is strategic score benchmarking for an employee benefits programme: www.aon.com/unitedkingdom/employee-benefits/online-benefits-and-communications/the-benefits-score.jsp