What metrics should you track to analyze benefits data?

2 Utilization rates

Another important metric to track is the utilization rate, which shows the percentage of enrolled employees who actually use a certain benefit program. This metric can help you evaluate the effectiveness and satisfaction of your benefits offerings, as well as monitor any trends or changes in employee behavior. A high utilization rate may indicate that your benefits are valuable and appreciated by employees, while a low utilization rate may suggest that your benefits are underperforming, irrelevant, or confusing.

3 Cost per employee

A third key metric to track is the cost per employee, which shows the average amount of money spent on a certain benefit program per enrolled employee. This metric can help you measure the return on investment and efficiency of your benefits offerings, as well as compare and benchmark them with other similar programs or competitors. A high cost per employee may indicate that your benefits are expensive, wasteful, or unsustainable, while a low cost per employee may imply that your benefits are economical, optimized, or scalable.

4 Employee satisfaction

A fourth essential metric to track is the employee satisfaction, which shows the degree of happiness and engagement of employees with a certain benefit program. This metric can help you understand the impact and value of your benefits offerings on employee morale, retention, and productivity, as well as gather feedback and suggestions for improvement. A high employee satisfaction may indicate that your benefits are meeting or exceeding employee expectations, while a low employee satisfaction may reveal that your benefits are disappointing, frustrating, or demotivating.

5 Business outcomes

A fifth crucial metric to track is the business outcomes, which shows the correlation and causation between a certain benefit program and the key performance indicators of your organization. This metric can help you demonstrate the strategic and financial value of your benefits offerings to senior management, stakeholders, and investors, as well as justify and optimize your benefits budget and allocation. A positive business outcome may indicate that your benefits are contributing to the growth and success of your organization, while a negative business outcome may indicate that your benefits are hindering or harming your organization.

By tracking these five metrics, you can gain a comprehensive and holistic view of your benefits data and analytics, and use them to inform and improve your benefits decisions and actions. However, remember that these metrics are not static or isolated, but dynamic and interrelated. Therefore, you should track them regularly, consistently, and comparatively, and look for patterns, insights, and opportunities across them.