Benchmarking helps businesses understand how their benefits compare with the NZ market. It can highlight gaps that may affect recruitment, retention, or employee satisfaction.
Running a small business means constantly balancing priorities. Hiring the right people, keeping good staff, and managing costs all compete for attention.
When it comes to employee benefits, many NZ business owners eventually ask the same question: are we doing enough?
You may already have something in place. Perhaps a health plan, an employee assistance program (EAP), or some flexible work arrangements. But it can be difficult to know how your benefits compare to what other businesses of your size are offering.
Unlike salary data, which is widely discussed, benchmarking employee benefits across the NZ SME market is not always easy. This often leaves business owners unsure whether they are behind the market or already offering a competitive package.
This article explains what employee benefits typically look like across different NZ business sizes, so you can see where your organisation may sit.
Why benchmarking your benefits matters
Employee benefits are increasingly part of total remuneration comparisons. When candidates evaluate job offers, they often look beyond salary and assess the overall employment package as part of total remuneration comparisons. When candidates evaluate job offers, they often look beyond salary and assess the overall employment package.
Benchmarking helps employers understand whether their benefits offering aligns with what employees expect in the market. It can also help organisations identify gaps before they begin affecting recruitment or retention.
Employees also have several core workplace rights and entitlements. According to New Zealand employment guidance, “employees are entitled to annual holidays, public holidays, sick leave, bereavement leave, and parental leave".1
Employee benefits can also play an important role in supporting the broader health of a workplace. Marsh notes that offering company benefits to employees can help retain and attract top staff.
Understanding these baseline obligations helps employers identify where their statutory responsibilities end and where the opportunity to strengthen their employment offering begins. Adding additional benefits is where employers can really differentiate their offering and stand out.
What NZ businesses with 5 –50 employees typically offer
Among smaller NZ businesses, employee benefits can vary widely. Some organisations provide only the legally required minimum, while others introduce additional benefits to help attract and retain staff.
For many SMEs in this size bracket, baseline benefits commonly include:
- Access to an employee assistance program (EAP)
- Flexible working arrangements, such as remote work or adjusted hours
Employers competing more actively for talent often introduce additional benefits beyond these minimum standards.
These benefits may include group income protection covering illness and accident, group health insurance, or group life insurance for employees with dependents. Some organisations also expand EAP access to include digital services or support for family members.
A smaller number of employers position themselves as employers of choice by offering broader wellbeing and protection benefits.
These can include full group health insurance with family extension options, critical illness cover alongside income protection, occupational health services such as flu vaccinations or health checks, and digital wellbeing support programs.
What NZ businesses with 50–100 employees typically offer
As organisations grow, employee expectations around benefits often increase.
Many businesses with between 50 and 100 employees offer group health insurance alongside life cover.
The difference between average and leading employers in this segment is often not whether benefits exist, but how extensive they are.
For example, some organisations extend health cover to family members or include support for employees with pre-existing medical conditions where eligible. Others introduce additional protection, such as critical illness cover or invest in wellbeing initiatives like counselling services or occupational health programs.
According to Marsh, offering benefits can help organisations look after key and loyal staff while supporting workplace wellbeing and employee insurance benefits.
The most common gaps in NZ SME benefits packages
When comparing typical SME benefits packages with those offered by more competitive employers, several gaps often appear.
One of the most common relates to income protection for illness.
In New Zealand, the public accident insurance system provides support when injuries occur. According to ACC, “our no-fault scheme covers everyone in New Zealand if you're injured in an accident.”5
This means employees may not have income replacement if they experience a serious illness rather than an accident.
Other gaps that sometimes appear in SME benefits programs include:
- Health insurance that covers employees but not their families
- Limited support for employees with pre-existing medical conditions
- Absence of critical illness cover, even when income protection exists
These gaps can affect how employees perceive the overall value of a benefits program.
How do you find out where your business sits?
Understanding how your employee benefits compare with the NZ market can be difficult without access to benchmarks.
One practical approach is the Employee Benefits Evaluator, a free diagnostic tool designed for NZ SMEs.
The tool takes about 10 minutes to complete and compares your current benefits offering against the NZ market. Once completed, it provides a snapshot of where your organisation sits and highlights areas where improvements could have the greatest impact.
Start your benchmarking
Start the Employee Benefits Evaluator
The Employee Benefits Evaluator provides a simple way to review your benefits against the NZ market.
You will receive a clear snapshot of how your benefits compare with other NZ businesses of your size and where improvements could strengthen your employee value proposition.
If gaps appear, what happens next?
If the results suggest there may be meaningful gaps in your current program, a Marsh specialist can discuss options that may suit your organisation.
Employee benefits solutions such as Select by Mercer Marsh Benefits allow SMEs to introduce benefits gradually and choose options that align with their business goals. Many businesses begin with one or two benefits and expand their program over time as their workforce grows.
Frequently asked questions
Employees have several statutory rights. These include leave entitlements such as annual leave, public holidays and sick leave.
ACC operates a no-fault accident scheme covering injuries caused by accidents.
ACC explains that it covers injuries caused by accidents. It generally does not provide support for conditions that are not injury-related, such as general illness.
Group income protection provides financial support if employees cannot work for an extended period due to illness or injury.
Extending health insurance to family members can increase the perceived value of the benefit. Employees with partners or children may find the benefit more meaningful when their family is also covered.
Many candidates compare the full employment package when considering job offers. This includes salary, health benefits, insurance cover, and well-being support provided by the employer.
Benchmarking tools such as the Employee Benefits Evaluator can compare current benefits against typical NZ market offerings.
The Employee Benefits Evaluator takes around 10 minutes to complete. It provides a quick overview of how your current benefits compare with those of other NZ businesses of a similar size.
No. Many SMEs introduce benefits gradually as their business grows. Organisations often start with priority areas such as health insurance or income protection and expand their program over time.
References
- Employment New Zealand, “Annual holidays, https://www.employment.govt.nz/leave-and-holidays/annual-holidays, accessed 22 July 2026
- Inland Revenue, “Employing staff”, https://www.ird.govt.nz/employing-staff, accessed 22 July 2026
- New Zealand Government, “Workers’ rights”, https://www.govt.nz/browse/work/workers-rights, accessed 22 July 2026
- Worksafe, “Managing health and safety”, https://www.worksafe.govt.nz/managing-health-and-safety/, accessed 22 July 2026
- ACC, “What we cover”, https://www.acc.co.nz/im-injured/what-we-cover, accessed 22 July 2026
Marsh Limited (NZBN 9429040918792)(“Marsh”) arranges the insurance and is not the insurer. This page contains general information and does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh on request. This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage.
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