Employee Benefits Insights
Find (and Keep) Great Employees With a Data-Driven Compensation Strategy
OCTOBER 7, 2025
Employers face a complex set of challenges when designing competitive, equitable compensation programs. USI Insurance Services’ multidisciplinary practice is uniquely positioned to help organizations adopt a strategic, data-driven approach to total compensation.
In an era marked by continued economic uncertainty, employers are under pressure to:
- Balance the need for competitive wages with tightening budgets
- Monitor pay equity and ensure compliance with emerging transparency laws
- Keep high-performing employees incentivized and engaged
- Control employee benefits spending as health plan costs increase
Without clear communication and strategic alignment, compensation decisions can contribute to employee dissatisfaction and increased turnover.
Benchmarking Aligns Compensation With Market Realities
Benchmarking can help employers validate their current compensation strategy and identify plan design changes to optimize value. By regularly comparing internal pay practices to external market data, employers can maintain competitive salary ranges, increase pay equity and transparency, and reward employee achievements within defined budgetary constraints.
Get Additional Benchmarking Insights From USI
Explore plan design and spending insights from our 2025 Benefits Benchmarking Study and request a custom plan performance assessment for your organization.
Read more about how benchmarking can also bring your retirement plan into alignment with your total compensation strategy.
Guided by their compensation philosophy, an employer can use benchmarking to clearly explain the “what” and “why” behind the pay structure, driving employee engagement and fostering a culture of high performance — all of which can help an employer become a highly sought-after workplace.
Considerations for Compensation Benchmarking
Compensation benchmarking is a multi-stage process that requires organizations to engage in thorough preparation and research:
Step 1: Identify key roles and standardize job descriptions to match external data.
Step 2: Gather compensation information from reputable sources, considering factors that define the relevant labor market, like industry, location, and company size. The current pay structure is compared against market data to identify areas for improvement.
Step 3: Implement changes that ensure fair and compliant compensation practices, which will also promote employee retention and satisfaction.
Step 4: Review compensation regularly to remain competitive and aligned with business goals.
How USI Can Help
USI Insurance Services’ nationally networked experts in compensation, employee benefits, and retirement blend compensation knowledge and experience with AI-driven insights to help organizations benchmark their offerings — increasing plan value while optimizing spending. Our strategy includes:
- Compensation benchmarking
- Incentive analysis and structure
- Clear compensation philosophy and communication
Combining benefits and retirement plan benchmarking, we leverage industry-leading market data and sophisticated analysis to help clients build a competitive and cost-effective total compensation program.
How can you develop a sustainable total compensation strategy that contributes to the long-term success of your organization? Contact your local USI representative or email ebsolutions@usi.com to learn more.
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