Cost of Employee Benefits: Trends and Strategies
January 9, 2024
Understanding the current trends in the ever-evolving landscape of employee benefits, is crucial for businesses aiming to stay competitive while maintaining a healthy profit margin. Read more as we review costs associated with employee benefits, exploring both the average expenses and strategic approaches adopted by employers.
Average Cost of Employee Benefits
In 2023, the average cost of employee benefits, as reported by the U.S. Department of Labor, was $13.39 per hour for civilian workers. For private industry workers, benefit costs averaged $12.06 per hour, constituting 29.4% of total employer compensation. State and local government workers had an average benefit cost of $22.35 per hour, accounting for 38.4% of total compensation. Legally required benefits for private industry and government workers averaged $3.08 and $3.14 per hour, respectively. (Source: U.S. Bureau of Labor Statistics, June 2023)
Employee Benefits as a Strategic Tool
Employers are increasingly recognizing the strategic value of benefits in recruiting and retaining talent. Considerations in this considerations in this area:
- Comparing the benefits offered by your organization with industry peers.
- Understanding the impact of benefits on recruitment, retention, and overall company performance.
- Analyzing how employers allocate benefits costs in granular detail.
Employee Benefits Guide
Gain an understanding of the evolving trends in employee benefits, analyze a combination of data. While some may come with a cost, it is the most efficient to get detailed information about the ever-changing landscape of benefits. Download the guide for insights that will help you stay competitive and make informed decisions regarding employee benefits.
To get answers to all or most of your questions, you’ll likely need to analyze both public and proprietary data. Though it typically costs money to access proprietary data, it is the best way to get detailed information.
Courtesy of SBAM-approved partner, Ahola.