The world of federal contractor benefits is complex, and many companies need help developing the ideal offering. In addition to identifying the most effective benefits plan to suit the unique concerns of employees who work on federal contracts, employers need to ensure their offering is competitive compared to those provided by other companies that may hire from the same talent pool.
How can businesses ensure their offer stands out? Benefits benchmarking is a great way to position plans to attract and retain the most qualified employees.
Working on federal contracts can be very demanding, and an appealing benefits package helps businesses attract the most talented professionals.
Understanding Benefits Benchmarking
Businesses across all industries often use benefits benchmarking. In the federal contracting sphere, it is useful for assessing whether a business’s employee benefits compare favorably to those offered by other federal contractors in their sector.
While some people believe it entails matching what other contractors are offering, it is actually much more complex and involved. It provides a deep understanding of the overall benefits landscape and how a business can position itself as a top employer.
Key Benefits to Benchmark for Talent Acquisition
Outlined below are some of the key benefits businesses should benchmark when focusing on talent acquisition.
Health Insurance and Wellness Programs
When candidates are comparing job offers, health insurance and wellness programs are often among their top considerations. Therefore, federal contractors who want to attract top talent need to ensure that their offerings are as good as those of their competitors, if not better.
Retirement Plans and Other Financial Benefits
Many employees are concerned about their long-term financial security, and offering a competitive retirement plan is particularly helpful for federal contractors looking to attract more experienced employees closer to retirement age.
Flexible Working Hours and Remote Work Options
Flexible working hours are becoming increasingly popular as employees seek a better work-life balance. Adjusting their hours to suit the traffic flow can also help them avoid challenging commutes.
Remote work options are another excellent offering to help federal contractors and employees save costs.
Benchmarking Process: Step By Step
Here is a look at the specific steps involved in benefits benchmarking for federal contractors.
Identify Competitors and Industry Standards
Before the benchmarking process gets fully underway, federal contractors must identify their competitors and examine the prevailing industry standards.
Collect and Analyze Benefits Data
The next step entails collecting data about the offerings of other federal contractors so businesses can make smarter choices about their own offerings. This data should be analyzed carefully and compared to the business’s current offering.
Adjust Benefits Offerings Based on Findings
After analyzing the available data, federal contractors should fine-tune their offerings to ensure they remain appealing and competitive to potential hires. This can also prevent current employees from seeking other opportunities with more attractive benefits.
Challenges in Benefits Benchmarking
One of the most common challenges federal contractors may encounter during benefits benchmarking is difficulty accessing competitor data. Many businesses do not publicize their benefits offerings, which can make it difficult for federal contractors to obtain this information without outside assistance from benchmarking professionals.
Another common obstacle is differing contract requirements between the federal contractor and their competitors, which can complicate direct comparisons.
Finally, the complex government regulations that apply to federal contracting work can make benchmarking more complicated than it would be for businesses operating in different industries. To overcome these challenges, many federal contractors hire consultants versed in the ins and outs of benchmarking to take over this complicated task on their behalf.
Although it requires an investment, many businesses report that employee retention and recruitment gains are well worth the expense. Benchmarking tools can also make the process easier.
Communicating Benefits to Potential Hires
Federal contractors must also ensure they properly communicate the benefits they offer to potential hires in order to maximize their benchmarking efforts. Providing potential hires and current employees with clear and concise information can help them make more informed decisions and better understand what is offered.
Federal contractors that have human resources departments should take advantage of their expertise to communicate the benefits available and ensure employees understand how to make the most of them. Thanks to modern technology, numerous tools and platforms that can help businesses better communicate their benefits to employees.
Contact Business Benefits Group for a Federal Contractor Benefits Review
Don’t lose valuable talent to competitors with superior benefits offerings. Reach out to the experienced federal contracting benefits consultants at Business Benefits Group (BBG) to learn more about how we can help your business win the talent war and enjoy a prosperous future.