Use this Benefits Spend Rate Calculator to get the desire metric in just a few clicks or download free template in Excel.
Benefits Spend Rate Calculator is an excel template with predefine formulas to calculate the percentage of total compensation spent on employee benefits.
So, Before we discuss template in details, let us understand following terms:
- Employee Benefits
- Benefit Spend Rate
Employee Benefits are non-wage compensation provided to an employee apart from normal wages or salaries. These benefits include health, vision, life, dental disability insurance, vacations.
Moreover, it includes holiday pay and maternity leave, contribution to retirement, profit sharing, stock options, etc. as benefits depending on the company policy.
Furthermore, it solely depends on the company policy as to what benefits they provide to their employee. Some companies pay full insurance premiums and some contribute a part of it for their employees.
However, Increase access and flexibility in benefits can help retain the employees. Good employee benefit policy results in increase productivity. Additionally, employers get tax deductions of premiums paid.
What is Benefit Spend Rate?
Benefits Spend Rate is percentage of total compensation spent on employee benefits.
Moreover, The Benefit Spend rate has increased in recent times It has risen from about 20% of total compensation to 30% of Total Compensation.
Benefits Spend Rate Calculator Excel Template
We have create a simple and easy Benefit Spend Rate Calculator Excel Template with predefine formulas. So, Just enter few details and template will automatically calculate Benefit Spend Rate for you.
Moreover, you can calculate the Benefits Spend Rate in general by providing only two details. Thus, Apart from that, you can calculate a detail calculation for Benefit Spend Rate.
How To Use Benefit Spend Rate Calculator Excel Template
So, This calculator consists of 2 sections:
- Benefit Spend Rate
- Benefits Spend Rate Detailed Calculation
1. Benefit Spend Rate
Thus, You need to enter only 2 details to derive Benefit Spend Rate in the section. So, One is total amount of money spent on Benefits and second is the total amount of compensation.
2. Benefit Spend Rate Detailed Calculations
With this section, you can calculate benefits spend rate by providing bifurcation of each type of expense include in benefits like health, life, dental, accidental, disability insurance, etc.
Thus, There are 2 sub-sections:
- Direct Compensation
Moreover, The benefits section consists of following:
Direct Compensation consists of following:
Short and Long-Term Incentive Pay
When you enter above details it will calculate the Benefit Spend Rate for you.
Total Compensation = Direct Compensation + Benefits
Thus, formula applied here is A/(B+A) where:
Benefit Spend Rate = Benefits Spend / (Benefit Spend + Direct Compensation)