71% of UK employees would leave their job for better rewards. If your healthcare benefits aren't competitive, you risk losing talent. Benchmarking helps you compare your offerings with industry standards, ensuring they meet employee needs and align with market trends.
Key Points:
- Why Benchmark? Attract and retain talent, manage costs, and stay compliant.
- What to Benchmark? Compare benefits like private healthcare, pension contributions, mental health support, and digital healthcare solutions.
- How to Benchmark? Use three methods:
- Internal: Compare across departments or locations.
- Competitive: Analyse competitors' offerings.
- Functional: Learn from other industries.
- Metrics to Track: Employee satisfaction, benefit usage, cost efficiency, and compliance with UK regulations.
- Regional and Sector Needs: Tailor benefits to local healthcare access and industry-specific priorities.
Quick Tip:
Use platforms like Perkwise to compare providers and simplify your decision-making. Focus on cost, coverage, employee experience, and provider reputation.
Start benchmarking now to build a benefits package that attracts and retains top talent.
Healthcare Benefits Benchmarking Basics
What Benefits Benchmarking Means
Healthcare benefits benchmarking is the process of evaluating your company's benefits package by comparing it to industry standards, competitors, and best practices across the UK market [2][3]. This involves looking at what employees value, how much competitors are spending, and the regulatory requirements that shape the benefits landscape.
James Carrick, International Senior Manager at Engage, describes the process as follows:
"Benchmarking could be anything from offering side-by-side comparisons, sector-specific data, and insights into common employer practices." [2]
This isn’t something you do just once and forget about. The UK benefits market is constantly changing - new providers emerge, employee expectations shift, and regulations evolve. Regular benchmarking helps you stay on top of these changes, ensuring your benefits package remains competitive and compliant. This understanding lays the groundwork for setting clear goals and criteria for benchmarking.
Main Benchmarking Goals
The primary aim of benchmarking is to attract and retain talent. Research shows that 69% of employees choose jobs based on better benefits, and 44% stay with their current employer because of the benefits offered [2]. This makes getting your benefits package right a critical factor in recruitment and retention.
Cost management is another important goal. Benchmarking helps you identify overlapping benefits that waste resources and uncover gaps where you may be falling behind competitors [2]. Additionally, compliance and risk management are essential, particularly for companies operating in multiple regions or expanding internationally. Benchmarking ensures you meet local regulatory requirements and align with industry standards [2].
James Carrick highlights the importance of actionable insights in this process:
"We often analyse data to provide actionable insights rather than merely reporting findings." [2]
This approach ensures that benchmarking isn’t just about collecting data but about using it to shape a smarter benefits strategy. With these goals in mind, choosing the right benchmarking method becomes essential.
3 Types of Benchmarking for UK Companies
UK companies typically use three types of benchmarking to evaluate their benefits performance. Knowing how and when to apply each type can give you a well-rounded view of your position in the market.
- Internal benchmarking: This compares performance across different departments, locations, or employee groups within your organisation [4]. For example, you might find that employees in your London office need more mental health support than those in Manchester, or that your tech team values different perks than your sales team.
- Competitive benchmarking: This involves comparing your benefits directly with those of competitors in your industry and region [4]. It’s particularly useful in understanding how you measure up against companies vying for the same talent. Focus on organisations of similar size, location, and workforce demographics to get the most relevant insights.
- Functional benchmarking: This looks at organisations outside your industry that share similar processes or employee needs [4]. It’s a great way to discover new ideas. For instance, a manufacturing company might learn about digital wellness platforms from tech startups.
The best benchmarking strategies combine all three approaches. Start with internal data to understand your current position, use competitive benchmarking to pinpoint immediate gaps, and then explore functional benchmarking for fresh ideas that could set you apart. By layering these methods, you can build a benefits package that’s both competitive and forward-thinking.
How to Set Benchmarking Criteria for UK Healthcare Benefits
Setting effective benchmarking criteria for healthcare benefits in the UK requires a blend of understanding legal obligations and addressing workforce challenges. Without clear metrics, it’s hard to determine if your benefits truly meet employee needs or stay competitive. Let’s break down the key metrics and legal considerations that should guide your approach.
Required Metrics and Legal Rules
Start by focusing on UK-specific compliance requirements. For example, the Care Quality Commission (CQC) sets standards for care quality and patient safety, which can impact the healthcare benefits you offer[8]. Additionally, the Health and Care Act 2022 has introduced stricter rules around reporting and transparency, reshaping how benefits are managed[8].
Cost metrics are another crucial factor. On average, employers spend about 14% of payroll on benefits to remain competitive[5]. However, this figure can vary depending on the industry and region, so treat it as a guideline rather than a fixed benchmark.
Utilisation rates provide insight into how much employees actually use the benefits on offer. While many companies focus on enrolment numbers, it’s more meaningful to track real usage. For instance, 72% of organisations report ‘low’ or ‘average’ employee engagement with their benefits[6].
Employee satisfaction is also key. Outcome-based satisfaction metrics can reveal how well your benefits align with employee expectations. With 39% of employees willing to leave their job for better benefits - even without a pay rise - satisfaction directly impacts retention rates[6].
Finally, new developments like the NHS Digital Staff Passport, set to roll out by August 2025, are raising the bar for credential verification. This is especially relevant if your benefits involve NHS contractors or healthcare staffing[7].
Industry Standards by Sector
Healthcare benefit benchmarks vary widely between sectors, reflecting different priorities and budgets:
- Financial services: These firms often provide private medical insurance, executive health screenings, and stress management programmes. High-pressure work environments make mental health support and virtual GP services highly valued.
- Manufacturing and industrial sectors: Benefits here often focus on occupational health services, physiotherapy, and injury prevention, tailored to meet the needs of shift workers and address workplace safety concerns.
- Technology companies: Digital health solutions, mental health apps, and flexible healthcare options are common, especially to support remote or hybrid working arrangements.
- Retail and hospitality sectors: Operating under tighter budgets, these industries prioritise accessible, low-cost benefits like health cash plans and employee assistance programmes, which offer immediate value to employees.
While the specific needs of a tech startup may differ from those of a construction firm, both can benefit from strong mental health support. This is particularly important given that stress, depression, and anxiety accounted for 16.4 million workdays lost to ill health in 2023–24[6].
Regional Differences in Healthcare Access
Healthcare access across the UK varies significantly, and this should influence your benchmarking criteria. For example, employees in London and the South East often prioritise fast access to private healthcare to bypass NHS waiting times, especially for non-urgent treatments. High living costs and lengthy commutes in these areas also shape healthcare priorities.
In Northern England, healthy life expectancy varies dramatically. In Blackpool, men have a healthy life expectancy of just 53.3 years, compared to 71.9 years in Richmond-upon-Thames - a staggering 18.6-year gap[10]. Similar disparities exist elsewhere: Glasgow City versus East Dunbartonshire in Scotland (13.6 years), Blaenau Gwent versus Monmouthshire in Wales (10.9 years), and Belfast versus Lisburn & Castlereagh in Northern Ireland (11.0 years)[10]. These gaps highlight the need for tailored healthcare strategies that address local challenges. For instance, a company operating in both Blackpool and Richmond-upon-Thames will need distinct approaches to meet the differing needs of its workforce.
Access to healthcare services also varies widely. Research shows a 15-fold difference in rates of percutaneous coronary intervention between Primary Care Trusts, and knee replacement revision rates vary seven- to ninefold[9]. These disparities underline the importance of considering local healthcare availability when designing benefits. Employees’ needs can differ greatly depending on the region, and a one-size-fits-all approach may fall short of addressing these variations.
How to Compare Healthcare Benefits Providers
Picking the right healthcare benefits provider is a decision that can significantly influence how you attract and retain talent. It’s not just about finding the cheapest option - it’s about finding a provider that aligns with your organisation's needs and delivers real value. Once you’ve established clear benchmarks, you can dive into comparing providers to see which one ticks the most boxes.
What to Look for When Comparing Providers
Cost structure is often the first thing to consider, but it’s important to look beyond the price tag. For example, private GP appointments can range from £40 to £90 for a short session. Some providers include extras like prescriptions or tests in their packages, while others might charge additional fees for services such as fit notes. Carefully review what’s included in each plan to make sure you’re comparing like-for-like.
Coverage options can vary widely, so it’s worth digging into the details. Look for providers that offer access to specialists, mental health support, and preventative care. Research shows that companies with strong employee benefits see a productivity boost of around 21% [11]. Flexibility is also key - what works for a tech startup in London might not suit a manufacturing firm in Birmingham.
Employee experience is another critical factor. Providers that integrate with your existing HR and payroll systems can simplify admin tasks. Features like employee self-service portals and mobile access make it easier for staff to actually use the benefits on offer.
Provider reputation is essential for peace of mind. Verify that the provider is registered with the Care Quality Commission (CQC) and that their doctors are listed with the General Medical Council (GMC) [12]. This isn’t just about ticking compliance boxes - it’s about safeguarding your team and your organisation.
Data analytics and reporting capabilities can help you measure how well your benefits programme is working. With nearly 57% of employees saying financial stress impacts their productivity, having clear metrics to validate the value of your benefits is crucial [11].
How to Use Perkwise for Provider Comparisons
Perkwise makes comparing healthcare benefits providers much easier by offering a platform where you can review and compare options side by side. Instead of spending hours jumping between websites, you can get all the information you need in one place.
User reviews are a standout feature, giving you real-world insights from businesses that have already used these services. You can find out how providers handle claims, customer service, and overall employee satisfaction - things that marketing brochures rarely tell you.
Expert recommendations help you navigate the more technical aspects of healthcare benefits. With a focus on UK-specific needs, Perkwise can guide you towards providers that fit your industry and budget.
The comparison tools allow you to filter providers based on criteria like coverage type, budget, and employee numbers. This targeted approach ensures you’re only looking at options that suit your company’s specific needs.
Example: How to Compare Virtual GP Services
Let’s take a closer look at how Perkwise’s tools can be applied to compare virtual GP services, which have become increasingly popular as demand for remote consultations grows [13].
Consultation availability is a key factor. Some providers offer extended hours, which can be a game-changer for shift workers or employees with busy schedules. For example, Circle offers appointments from 8am to 10pm daily, while DocTap operates from 8am to 7pm on weekdays with shorter hours on weekends [12].
Appointment duration and pricing also vary. Bupa charges £59 for a 15-minute consultation, while DocTap starts at £44. For more complex needs, Spire offers 30-minute sessions from £90, which might provide better value.
Service scope is another aspect to consider. Some providers, like Push Doctor, operate entirely online and offer 10-minute appointments for £49, available from 8am to 8pm daily [12]. Others, like HCA, provide both virtual and in-person consultations, though their prices start at £90 [12].
User satisfaction ratings can provide valuable insights into service quality. For instance, Livi has a rating of 4.5 out of 5 based on over 36,000 reviews, while Goodbody scores 4.4 out of 5 from more than 2,000 reviews [14].
When comparing virtual GP services, focus on factors like consultation hours, appointment length, pricing, service mix, and user reviews. The goal is to find a service that your employees will actually use - not just the cheapest option available.
How to Benchmark Mental Health and Digital Healthcare Solutions
Mental health support is a pressing concern, with 86% of UK workers facing challenges, yet only 33% receiving adequate care [17]. The rise of digital healthcare solutions offers employers a chance to provide better support while managing costs.
How to Assess Mental Health Support Options
When evaluating mental health benefits, Employee Assistance Programmes (EAPs) are often the starting point for UK employers. On average, EAP utilisation in the UK is around 10.4% [15]. However, low usage rates might stem from awareness or accessibility issues rather than a lack of effectiveness. For instance, 84% of EAP interactions in the UK occur via telephone, while only 16% happen digitally [15].
Utilisation rates also vary by sector, ranging from 4.6% in agriculture to about 11% in other industries [15]. To gauge programme success, consider ROI benchmarks, which show returns of £5 to £7.27 for every £1 invested in mental health support [16].
Sharon McCormick highlights a limitation of traditional EAPs: many rely heavily on self-help resources, which may not provide the direct therapeutic support some employees need [16]. Gender differences further complicate engagement. Although one in three men report work-related mental health issues, only 29.5% of EAP calls come from men, suggesting the need for tailored strategies to address diverse employee needs [15].
Modern digital platforms, on the other hand, report usage rates as high as 50%, far surpassing traditional EAP engagement [16]. These figures underscore the potential of well-designed digital solutions to boost employee participation, offering valuable benchmarks when evaluating mental health programmes.
How to Use Digital Healthcare Solutions
Digital mental health solutions build on traditional support systems, offering scalable options at relatively low costs - typically between £3 and £9 per employee per month [17]. They can be a cost-effective addition to a broader benefits package.
When assessing telemedicine platforms, focus on factors like availability, response times, and integration with HR systems. Many platforms now provide 24/7 access, breaking down barriers to care. Digital therapeutics and health apps also stand out by offering continuous support rather than one-off interventions. Metrics such as user engagement, clinical outcomes, and employee satisfaction can help identify the most effective platforms. The best options combine self-help tools with access to professional care, ensuring well-rounded support.
In high-stress environments, crisis response capabilities are crucial. Evaluate how quickly platforms can provide urgent care and whether they offer qualified crisis counsellors. Real-time data analytics from digital platforms can also enhance programme effectiveness by tracking usage patterns, identifying at-risk groups, and measuring intervention outcomes.
Adoption rates often hinge on the onboarding process. Leading platforms simplify implementation with digital, anonymous processes, supported by targeted campaigns and personalised guidance. Encouraging senior management to actively participate can help reduce stigma and boost engagement [18].
To be truly effective, digital solutions should integrate smoothly with existing HR systems, such as payroll, absence management, and performance tracking. This creates a cohesive support network for employees.
Using Perkwise to Review Digital Health Platforms
Once you've narrowed down your options, tools like Perkwise can make comparisons easier. Perkwise centralises reviews and expert insights tailored specifically to UK employers, helping you navigate the crowded digital health market.
User reviews on Perkwise provide practical insights into platform usability, customer service, and employee engagement. These reviews can reveal challenges like technical glitches or low adoption rates that might not be apparent during vendor demonstrations.
Additionally, Perkwise offers expert recommendations to help you understand the technical details of each platform. With a focus on employee benefits, the platform ensures that reviews consider key factors like HR system integration, UK employment law compliance, and alignment with workplace wellbeing strategies. This structured approach supports a more informed benchmarking process.
How to Use Your Benchmarking Results
As we've covered, benchmarking isn't just about spotting gaps - it's about using those insights to shape a benefits strategy that improves employee satisfaction and drives organisational success. By comparing your healthcare benefits against industry standards, you can see where you're ahead and where there's room for improvement. The next step? Turning those insights into action.
Key Takeaways from Your Benchmarking Process
Benchmarking sheds light on areas that might otherwise be overlooked [19]. It highlights where your benefits package could be falling short and where you're already doing well. For example, your analysis may have flagged inefficiencies in cost management or identified weak spots in employee engagement. Metrics like programme utilisation, digital adoption rates, and provider performance give you a clear idea of where to focus your efforts.
"We have to optimise. You're going to see a trend of reducing or eliminating underappreciated or underused programmes so we can invest in other programmes that employees value more." – Rob Heir, VP of Total Rewards at Bright Health [20]
This data-driven approach allows you to shift resources towards benefits that genuinely matter to your employees. The goal isn't to mimic what others are doing but to tailor your strategy based on real insights and your workforce's specific needs [19].
Steps for HR Professionals
With your benchmarking data in hand, it's time to prioritise the changes that will have the biggest impact [19]. Focus on tackling the most pressing gaps first, while keeping both employee preferences and business objectives in mind. For example, if your analysis shows low participation in mental health programmes, dig deeper - maybe the issue lies in accessibility, lack of awareness, or the programme design itself.
Start with quick, manageable wins, like improving how benefits are communicated or renegotiating provider terms. More complex initiatives, such as rolling out a new digital health platform, can be planned for later phases.
Communication plays a critical role here. Use clear, open channels to explain not just what changes are happening but why they are necessary [19].
"Fluid communication with colleagues will be important and essential. It should not be limited to stating what benefits are being offered. Companies need to provide rationale for choosing the offerings or 'the why' and how it is going to create a win-win for the colleague and the company." – Padma Thiruvengadam, CHRO & Board Advisor at Takeda, Lego Group [20]
To ensure continuous improvement, monitor key metrics and gather employee feedback regularly [1]. Treat benchmarking as an ongoing process rather than a one-time project. This allows you to stay responsive to evolving employee needs. In fact, 39% of employers are planning to increase their benefits budget in the next year [21], showing that adapting to change is crucial for staying competitive in attracting and retaining talent.
"We listen to our employees because we want to make sure that we're providing adequate feedback and response to those surveys." – Judy Mendoza, Sr. Manager of Global Benefits at LinkedIn [20]
FAQs
What is the best way to benchmark healthcare benefits in the UK?
To benchmark healthcare benefits effectively in the UK, it’s important to start with a clear sense of purpose. Decide what you want to achieve - whether that’s boosting employee satisfaction, staying ahead in the market, or aligning benefits with your company’s broader goals.
Next, talk to your employees to find out which healthcare benefits matter most to them. Their input can guide you in tailoring a package that truly meets their needs. After gathering this feedback, look at what similar organisations in your industry are offering. Use trusted sources like industry surveys or benchmarking tools to gather accurate data and identify trends.
Once you’ve collected the data, take the time to analyse it thoroughly. Look for any gaps in your current offerings or opportunities to enhance them. This process will help ensure your healthcare benefits are not only competitive but also relevant, making it easier to attract and keep top talent.
How can businesses keep their healthcare benefits compliant with changing UK regulations?
To keep in line with the ever-changing UK regulations, businesses need to routinely assess their healthcare benefits to ensure they meet the latest legal standards. This could involve staying informed about shifts like changes in employers' National Insurance contributions or updates to employee rights.
Keeping an eye on government announcements and industry news is equally important to ensure your benefits package not only complies with the law but also aligns with what employees expect. Offering compliance training for HR teams can be a practical way to manage these updates smoothly and maintain a benefits package that is both compliant and appealing to employees.
What should UK employers look for in a healthcare benefits provider?
When selecting a healthcare benefits provider for your UK employees, there are several factors to keep in mind. Start by evaluating the provider's track record and reputation in the industry. It's also essential to review the range of services they offer to ensure they can cater to the varied needs of your workforce. Flexible plans that adjust to changing employee requirements can be a big advantage.
Make sure the provider complies with UK regulations, such as being registered with the Financial Conduct Authority (FCA) if they offer private health insurance. Cost is another critical consideration - compare premiums and any additional out-of-pocket expenses to ensure the plans align with your financial constraints.
Lastly, don't overlook the quality of customer service and the simplicity of the claims process. Providers with responsive support teams and an easy claims experience can make a big difference in how employees perceive and engage with their healthcare benefits.