External benefits comparison can enable StopNShopToday, Inc. assess the competitiveness of its benefits package.

External Benefits Comparison

External benefits comparison can enable StopNShopToday, Inc. assess the competitiveness of its benefits package. External benefits comparison is closely associated with benchmarking which involves measuring the organization’s performance metrics to standards in the industry. An external analysis of benefits entitled to employees can enable the management to evaluate its compensation plan and make necessary changes for improved employee satisfaction and retention. The Human Resource Managers are tasked with conducting an external benefits comparison. This helps in ensuring that the company remains competitive in terms of attracting and retaining qualified employees. The following is an external benefits comparison of StopNshopToday, Inc.

Comparison of data between StopNShopToday, Inc and that obtained from the U.S. Department of Labor Bureau of Statistics (2005) highlights significant differences in benefits data. The total wages and salaries data for StopNShopToday, inc indicates a 50 percent of total compensation. on the other hand, data from the statistics bureau indicates that in 2005, employees in civilian category enjoyed a total wages and salaries of 70.2%, while those under the government received 67.9% of the total compensation, and 70.8% compensation in the private sector. Additionally, comparison by nature of industry group also indicates that the organization pays the lowest. From this comparison, it is clear that StopNShopToday, inc pays the lowest amount of salaries and wages to its employees. There is thus an urgent need to review the current wages and salaries in order to harmonize it with industry standards. The rising costs of health insurance premiums compounds the situation further. This is because the high premiums takes away a high proportion of employee salary.

The total benefits costs at StopNShopToday, Inc is slightly lower compared to industry standards. Civilian workers receive 29.% of the total compensation, government workers 32.1% of the total compensation and 29.2% in the private sector. At StopNShopToday, inc., workers receive a total benefits costs of 25% of the total compensation. This is slightly below what is received by other employees. Comparison according to industry group indicates that the service sector provides employees with an average of 28.7% in employee benefits. The goods-producing industry provides benefits of up to 34.5% of the total compensation. This indicates that there is need for StopNShopToday, inc to review its benefits program. In particular, there is need to review the percentage of benefits provided so as to meet the industry standards.

In the modern business environment, organizations provide employees with paid leave among other benefits. StopNShopToday provides employees with a 5% of total compensation in terms of paid leave. This is slightly below the industry standard. Civilian workers receive an average of 6.7%, while government workers receive 7.4%, and the private industry provide paid leave of up to 6.5% of the total compensation. Industry group comparison indicates that employees at the organization receive a relatively low rates in terms of paid leave. In the service industry, employees receive 5.6% of the total compensation while in sales and office employees receive an average of 6.7 percent. Comparisons using any other categories provide similar results – StopNShopToday, inc. provides paid leave compensation that is below the industry standards. As such, there is need to review paid leave also.


StopNShopToday, inc. provides a supplemental pay of 2% which is per the industry standards. Civilian workers are provided with a supplemental pay of 2.5%, while government employees receive a supplemental pay of 0.9%. This is below that provided by StopNShopToday, inc.for government employees. The private industry provides the highest supplemental pay on average with 2.9% of the total compensation. In terms of occupational group, the service industry provides a supplemental pay of 1.7% compared to 2.1% in sales and office. In management and professional, the supplemental pay is 2.4%. Compared with the industry standards, the supplemental pay provided by StopNShopToday, inc. is at per with other organizations and government. The organization can thus maintain the same rates.

StopNSHopToday, inc. provides insurance at the rate of 6% of the total compensation. Data indicates that in 2005, civilian workers were provided with an insurance rate of 8.1% of the total compensation. The private industry provided at a rate of 7.3% of the total compensation. The government provided insurance rate at 10.9% of the total compensation, the most attractive insurance rate among the three. Comparisons in terms of occupational groups indicate that the lowest insurance rate was in management and professional category, and the highest being in the sales and office sector with an average of 8.6%. From the above comparison, it is clear that StopNShopToday, inc. provides insurance compensation that is below the industry standards. The organization should review the insurance rates in order to improve employee job satisfaction levels.

The organization provides retirement and savings at the rate of 2% of the total compensation. This is below the industry average. For instance, civilian workers are given retirement and savings at the rate of 4.3% of total compensation. The government provides retirement and savings at the rate of 10.9% while the private sector provided at the rate of 3.6%. The rates provided by the organization are thus the lowest across the entire industry. In fact, the rate provided by the organization is half below the average rates in the industry. There is need to increase employee retirement and savings compensation for the future welfare of employees. StopNShopToday, inc. provides high rates of legally required benefits compared to other players such as the government and that provided in the private sector which accounts for 5.9 and 8.7 respectively. The organization does not provide other benefits which is common in other sectors such as the private sector and government, each providing 0.1%.

The following is a graphical depiction of compensation provided by StopNShopToday, Inc. and that provided by other groups such as civilians, government and private entities in 2005.

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From the above graph, it is possible to see that StopNShopToday, inc. provides the least compensation in all factors compared to other groups. There is need to increase the amount so as to match the industry standards.


United States Department of Labor. (2005). Employer Costs for Employee Compensation – December 2005.

Performance report-StopNShopToday, Inc