Measuring Value (Benefit Tips ® - © 2013)
The price of employee benefits can be as simple as dividing the monthly cost by the number of employees. But price is only part of the value equation. Calculating the value of benefits involves measuring indicators of success (employee satisfaction & turnover) for each strategic priority (staff retention) in addition to financial indicators of success (price & stability).
While the tools used to combine financial and nonfinancial performance measurement are diverse, the goal is to translate mission and strategy into objectives and measurements. Whether you use the Balanced Scorecard (BSC), Continuous Quality Improvement (CQI), or Plan-Do-Check-Act Cycle (PDCA), or Results Based Accountability (RBA), the value of employees benefits will be based on your unique goals and values.
The impact of a goal-oriented employee benefit plan is often under-estimated and can dramatically impact the viability of meeting your business objectives.