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Understanding Benefits Surveys: What They Are and How Companies Can Use Them Strategically

In a competitive job market, employee benefits are no longer just “nice-to-have” perks—they’re essential components of a compelling total rewards package. To ensure their benefits offerings are competitive, cost-effective, and aligned with employee expectations, many organizations turn to Benefits Surveys. These tools provide vital market intelligence and employee insights that can shape smarter, more strategic benefits decisions.

This article explores what Benefits Surveys are, how they work, and how companies can use them to improve both employee satisfaction and business performance.

What Are Benefits Surveys?

Benefits Surveys are structured tools designed to gather and analyze data related to employee benefits. These surveys can be categorized into two primary types:

1. External (Market) Benefits Surveys

These are conducted by third-party firms, industry groups, or consulting agencies. They collect aggregate data from multiple organizations about:

• The types of benefits offered (e.g., health, dental, vision, retirement)
• Employer contribution levels
• Eligibility rules and waiting periods
• Utilization rates
• Trends in new or emerging benefits (e.g., fertility support, mental health, remote work stipends)

Purpose: Help organizations benchmark their benefits against similar companies based on industry, size, region, or other relevant criteria.

2. Internal (Employee) Benefits Surveys

These are surveys administered within an organization to assess employee:

• Awareness and understanding of current benefits
• Satisfaction with existing offerings
• Preferences and priorities for future enhancements
• Utilization patterns and unmet needs

Purpose: Help employers understand what their own employees value most—and least—about their benefits, enabling more targeted and effective offerings.

Why Benefits Surveys Matter

Benefits Surveys are a powerful tool because they provide:

• Data-driven insights: Rather than relying on assumptions or anecdotal feedback, HR leaders can base benefits decisions on real-world evidence.
• Market competitiveness: Ensures your benefits keep pace with industry standards, helping attract and retain talent.
• Cost optimization: Helps prioritize high-impact benefits and eliminate underused or costly programs with low ROI.
• Employee engagement: Signals that leadership cares about employee needs and well-being.

How Companies Use External Benefits Surveys

External benefits benchmarking is essential for staying competitive and compliant. Here’s how companies leverage this data:

1. Comparative Benchmarking

Organizations compare their benefits to others in their industry, region, or size category. Key metrics often include:

• Employer vs. employee premium contributions
• Deductible and co-pay amounts
• PTO/vacation policies
• Retirement match percentages
• Wellness and supplemental offerings

This helps HR answer questions like:

• “Are we offering enough paid parental leave?”
• “Are our healthcare contributions in line with peers?”
• “What mental health benefits are becoming standard in our industry?”

2. Designing or Refreshing Benefits Packages

Market survey data is often used when:

• Launching a new benefits program (e.g., adding telehealth)
• Reevaluating annual offerings during open enrollment
• Preparing for mergers or acquisitions that require benefit harmonization

3. Executive and Board Presentations

Benefits benchmarking data gives HR and total rewards professionals the credibility and backing to advocate for strategic changes—such as expanding benefits or adjusting contributions—especially when pitching to senior leadership or finance teams.

4. Vendor Selection and Negotiation

Survey insights help HR evaluate whether their benefits vendors are offering competitive products and rates, strengthening their negotiation position.

How Companies Use Internal Benefits Surveys

Gathering employee feedback is equally crucial for designing benefits that resonate. Companies typically use internal surveys to:

1. Assess Satisfaction and Utilization

Questions might include:

• “How satisfied are you with our current health plan?”
• “Do you use the wellness program?”
• “Which benefits are most important to you?”

This data helps identify underutilized benefits and determine whether dissatisfaction exists due to quality, access, or communication gaps.

2. Guide Future Benefits Strategy

Surveys can reveal trends and preferences, such as:

• A growing demand for mental health resources
• Interest in student loan repayment support
• Greater value placed on flexible work over traditional perks

Insights like these enable HR to offer benefits that matter most to the workforce.

3. Improve Communication

Often, employees aren’t aware of all the benefits available. Surveys can identify knowledge gaps, helping HR tailor communications and increase engagement with underused programs.

Best Practices for Conducting and Using Benefits Surveys

For External Surveys:

• Use reputable sources: Consider partners like Mercer, Willis Towers Watson, SHRM, or local business associations.
• Match peer group profiles: Make sure the comparison group reflects your company’s size, sector, and region.
• Look beyond cost: Pay attention to plan design details, not just premiums or contributions.
• Combine with internal data: Use market data alongside employee preferences to make informed decisions.

For Internal Surveys:

• Keep surveys anonymous to encourage honest feedback.
• Use clear, unbiased language and avoid jargon.
• Time them well: Conduct surveys ahead of open enrollment or major program changes.
• Include both quantitative and qualitative questions (e.g., multiple choice and open-ended responses).
• Close the loop: Share results with employees and explain how the company will act on the findings.

Common Pitfalls to Avoid

• Over-reliance on averages: Just because a benefit is common doesn’t mean it’s right for your workforce.
• Ignoring subgroups: What works for one department or demographic may not suit others.
• Under-communicating: If survey results lead to no visible change, employees may become disengaged from future feedback efforts.
• Analysis paralysis: Data without action is wasted effort. Prioritize and pilot new initiatives when needed.

Conclusion

Benefits Surveys are more than a compliance exercise or checkbox—they are strategic tools that help companies remain competitive, responsive, and aligned with workforce needs. By combining external benchmarking with internal feedback, organizations can craft a benefits strategy that drives employee satisfaction, supports business goals, and enhances the company’s value proposition in the talent market.

In today’s ever-changing world of work, listening to your employees and learning from the market are not just smart practices—they are essential.