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The pitfalls of benchmarking

As humans, we feel a strong desire to be part of the pack. We compare ourselves to others in order to determine our own worth. We rationalize irrational ideas and notions.

By Rachel Miner | Updated on August 21, 2018
Not too long ago, I was on a trip where we were dropped off in the ocean, out in open water, to go snorkeling. When I agreed to the whole idea, I thought we would be in three or four feet of water, max. Never did I envision being so vulnerable and so far out there. To say that I was terrified is an understatement. The mantra that kept repeating in my mind was: Stick close to those in the water with me and I’ll be safer. I guess the thought of many of us being the victims of a shark attack felt better than just me.

As humans, we feel a strong desire to be part of the pack. We compare ourselves to others in order to determine our own worth. If we see someone who has a better car, we think they are more successful than us. When we see someone who is heavier than us, we think “Huh, maybe I’m not in as bad of shape as I think I am.” We rationalize irrational ideas and notions.

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In my role as a benefits consultant, I find that nearly three quarters of my prospects will ask me how their plan compares to other employers of the same industry. Yes, benchmarking surveys measure basic elements of a plan design, like co-pays, co-insurance, and deductibles. But sometimes, I feel like sharing a benchmark survey would be misleading. Why? Because there are a lot of employers with (excuse my French) sh*tty plans right now. If I’m telling an employer, “Yes, you’re keeping up with the trend,” they’ll think that’s a good thing. And frankly, it’s not. It means they’ve increased deductibles, cost shared more expenses with their employees, and increased premium contributions for the employees’ families, just like other companies have.

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