Spending too much on employee benefits? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Spending too much on employee benefits?

by on
in Employee Benefits Program,Human Resources

The U.S. government’s main survey on wages and benefits, Employer Costs for Employee Compensation, offers a good quarterly snapshot that can help you benchmark your company’s pay and perks.

The latest report says employer costs for wages and benefits average $26.86 per hour. Of that amount, employers spent $18.80 (70 percent) on wages and $8.06 (or 30 percent) on benefits.

To help you see if you’re spending more or less than average on various benefits, here’s a breakdown of average benefit costs:

-Legally required benefits averaged $2.17 per hour and 8.1 percent of total compensation, including Social Security/ Medicare ($1.51 per hour, 5.6 percent); unemployment insurance ($.18 per hour, 0.6 percent); workers’ comp ($0.48 per hour, 1.8 percent).

-Insurance averaged $2.19 per hour, also 8.1 percent of total compensation, including health ($2.06 per hour, 7.7 percent); life ($.05 per hour, 0.2 percent); short-term disability ($.05 per hour, 0.2 percent); long-term disability ($.04 per hour, 0.1 percent).

-Paid leave averaged $1.88 per hour and 7.0 percent of total compensation, including mainly vacation ($.88 per hour, 3.3 percent); holiday ($.62 per hour, 2.3 percent); and sick ($.28 per hour, 1.1 percent).

-Retirement and savings averaged $1.15 per hour and 4.3 percent of total compensation, including defined benefit ($.72 per hour, 2.7 percent) and defined contribution ($.43 per hour, 1.6 percent).

Read the full report at www.bls.gov/ect under Economic News Releases.

Leave a Comment