Benefits Administration Expense per Employee

Benchmarking Report

Benefits Administration Expense per Employee

This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Benefits Administration Expense per Employee. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.

What is Benefits Administration Expense per Employee?

The total amount of employee benefits administration-related expense incurred by the company over a certain period of time, divided by the total number of company-wide employees. Benefits administration typically involves the development, implementation and ongoing management of company health plan and retirement program (401k, etc.) benefits.

Why should Benefits Administration Expense per Employee be measured?

Benefits Admin Expense per Employee measures the total cost to manage and maintain the company's benefits programs on a per employee basis (i.e., average cost per employee). A higher than average value for this metric may be related to cumbersome or manual benefits administration processes, lack of discipline in ensuring accurate enrollment, and/or ineffective communications with the company's workforce in regards to the details and use of their benefits (health insurance, retirement plans, etc.). While a low value for this metric is preferred, this should also be balanced with the level of service being provided to the employees of the company, as the quality of service related to benefits program administration may impact employee satisfaction and turnover rates. In some cases, many aspects of benefits administration may be outsources to a third party vendor.

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