Benefits Spend Rate Calculator is a ready-to-use excel template with predefined formulas to calculate the percentage of total compensation spent on the employee benefits.
Before we discuss the template in details, let us understand the following terms:
- Employee Benefits
- Benefit Spend Rate
Employee Benefits are the non -wage compensation provided to an employee apart from normal wages or salaries. These benefits include health, vision, life, dental disability insurance, vacations.
It also includes holiday pay, and maternity leave, contribution to retirement (pension pay), profit sharing, stock options etc as benefits depending on the company policy.
It solely depends on 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.
Increased access and flexibility in benefits can help retain employees. Good employee benefit policy results in increased productivity. Additionally, employers get tax deductions of the premiums paid.
Benefit policy of a company provides a peace of mind and satisfaction by being assured that they & their families in bad times. During Serious illness or disability they feel secured and have additional protection. Employees feel proud presenting their employer as the best in the industry if they are satisfied with the coverage.
What is Benefit Spend Rate?
Benefit Spend Rate is the percentage of total compensation spent on the employee benefits.
The Benefit Spend rate has increased in recent years. It has risen from about 20% of total compensation to 30% of Total Compensation.
Formula To Calculate Benefit Spend Rate
Benefit Spend Rate Calculator Excel Template
We have created a simple and easy Benefit SPend Rate Calculator Excel Template with predefined formulas. Just enter a few details and the template will automatically calculate Benefit Spend Rate for you.
You can calculate Benefit Spend Rate in general by providing only two details. Apart from that, you can calculate a detailed calculation for Benefit Spend Rate.
Let us understand how to use this template in details.
How To Use Benefit Spend Rate Calculator Excel Template
This calculator consists of mainly 2 section:
- Benefit Spend Rate
- Benefit Spend Rate Detailed Calculation
1. Benefit Spend Rate
You need to enter only 2 details to derive Benefit Spend Rate in this section. One is the total amount of money spent on Benefits and the second is the total amount of compensation.
Applying the above-given formula, it will calculate the Benefit Spend Rate for you.
2. Benefit Spend Rate Detailed Calculations
With this section, you can calculate the benefits spend rate by providing bifurcation of each type of expense included in benefits like health, life, dental, accidental, disability insurance etc.
There are 2 sub-sections:
- Direct Compensation
Benefits section consists of the following:
Direct Compensation consists of the following:
Short and Long-Term Incentive Pay
When you enter the 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)
In addition to the above, you can also download Excel templates in other categories like HR and Payroll, Financial Analysis, Financial Statements, etc
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