Click here for the 2015 NFP Not for Profit Benefit Survey. You will find interesting benchmarking statistics but below are some that caught my attentions:
This survey is from participating NPO’s over the entire country so we need to take the results into proper context. What we do in WNY is not necessarily consistent in other parts of the country. Generally, our NPO clients are competing locally for their employees and a discussion of the local market is critical.
The 2015 year is behind us and hopefully your “books” for 2015 are closed. We are encouraging our clients to calculate their total benefit costs (including statutory coverage’s) as a % of total compensation. We are finding senior executive teams monitoring this % on a regular basis to make sure they remain within an acceptable range.
It would also be prudent to break down the % by Medical, Ancillary, Statutory, and Retirement benefits. We often find an organization over-funding one particular benefit and under-funding another. For example, an organization might be contributing 8% of pay to the retirement plan but are constantly challenged to maintain a financially healthy medical plan. The organization might consider, over time, to decrease the retirement benefits and shift the dollars to the medical plan. And keep the total cost of benefits the same.
Christopher C. Kempton, CLU, ChFC
Director – Group Benefits Division