

Providing competitive benefits is key to building a strong, successful team. Benchmarking is an important tool because it helps you get the data and insights needed to make smart decisions for your benefit plans. It’s also important for meeting rules, avoiding legal trouble, keeping up with industry standards, and supporting your employees.
Here’s why benchmarking should be a priority for your company and how you can use it to improve your plans.
The Employee Retirement Income Security Act (ERISA) sets rules for how employee benefits—like retirement and health plans—are managed. This law requires employers act in the best interests of their employees. Not following ERISA rules can lead to serious legal and financial problems.
With rising healthcare costs putting increased pressure on both employers and employees, managing benefits effectively is more important than ever.
ERISA covers both health and retirement plans, so leaders need to manage both types of benefits responsibly. While health and retirement plans require different reports and documents, the same careful process applies to both. Reviewing plans regularly, getting outside advice, and taking action can help reduce risks, cut costs, and protect employees and your company.
Benchmarking is the process of comparing your benefits against other companies to see how you measure up.
What to look at when benchmarking
Craig Rosenthal, CEO and co-founder of HealthPlanIQ, a thought leader in health insurance benchmarking shares, “Healthcare is too important to myopically focus on fees. Employers and employees need to know that they are getting quality care and achieving positive outcomes for what is by far their largest benefit outlay.”
Your employee benefits say a lot about your company’s values. Benchmarking helps you balance what employees need with what the company can afford. It leads to better hiring, lower turnover, and a more engaged workforce.
ERISA requires employers to act in the best interest of their employees. This means reviewing benefits regularly to catch high costs, outdated options, or other problems. Benchmarking shows you’re serious about following the rules and supporting your employees.
Competitive, compliant, and cost-effective employee benefit plans don’t happen by accident: they require thoughtful review and updates. We specialize in helping leaders like you benchmark and optimize 401(k) plans for better outcomes. Let us help you create a retirement plan that works for your employees and your business.
1 Kaiser Family Foundation. “Annual Family Premiums for Employer Coverage Rise 7% to Average $25,572 in 2024, Benchmark Survey Finds After Also Rising 7% Last Year." Accessed 7 Jan. 2025.
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