Management Consulting

Employers are increasingly recognizing the critical role that employee benefits play in recruitment, retention, and engagement. However, many struggle to connect their benefits offerings to broader business strategies due to a lack of clear, numerical evidence demonstrating the impact of these benefits. In a survey conducted by Aon, 82% of employers identified employee engagement as their top objective for online and flexible benefits schemes, yet 33% admitted they do not measure the success of these schemes in achieving their objectives. Furthermore, over half of the respondents indicated that increasing employee understanding and engagement with benefits is extremely important, but many lack the tools to effectively benchmark and assess their benefits programs. To address these challenges, Aon introduced The Benefits Score, a benchmarking tool designed to provide companies with a quantitative measure of their employee benefits programs. In the initial weeks following its launch, Aon conducted over 45 assessments and found that 80% of companies do not measure their return on investment in benefits, and 72% do not perform any benchmarking analysis. This lack of measurement makes it difficult for organizations to communicate the value of their benefits to key stakeholders. The Benefits Score offers a solution by creating a clear business case for change that aligns with corporate objectives. It evaluates key variables such as business aims, industry practices, and employee engagement, generating an overall score out of 100. This score is then compared to sector best practices, highlighting areas for improvement. For instance, a leading technology company achieved a score of 82, attributed to its well-defined objectives, diverse benefits offerings, effective communication strategies, and employee involvement in the design process. By utilizing The Benefits Score, organizations can better understand how their benefits stack up against market standards and identify strategies for improvement. This tool not only facilitates informed discussions about benefits strategy but also empowers managers to advocate for necessary investments in employee benefits, ultimately enhancing employee engagement and satisfaction.