Employee Benefits Procurement Intelligence
In this employee benefits procurement intelligence report, we have estimated the pricing of the key cost components. Insurance, legally required benefits, paid leave, supplemental pay, and retirement & saving are the cost components associated with employee benefits category. Together, they account for 29.6% of the total cost. The cost per employee for these activities varied greatly from company to company, with the majority reporting spending between USD 20.01 and USD 250 per employee. Employers most frequently reported spending between USD 100.01 and USD 250 per employee on these initiatives. Most of the allowances are costs to the employers. Only medical insurance and other special allowances are outsourced to third-party companies by the employer. Special allowances include meal coupons, entertainment subscriptions, gym memberships, etc.
Order your copy of the Employee Benefits category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
Operational Capabilities - Employee Benefits
- Industries Served - 20%
- Employee Strength - 20%
- Revenue Generated - 20%
- Years in Service - 15%
- Supplier Type - 15%
- Key Clients - 5%
- Compliance - 5%
Functional Capabilities - Employee Benefits
- Work Benefits - 20%
- Health Related Benefits - 20%
- Financial Benefits - 20%
- Lifestyle Related Benefits - 20%
- Others - 20%
Rate Benchmarking
The cost of Implementing employee benefits is significantly lower in India than in other developed countries like the US. This is due to a number of factors, including the lower cost of healthcare, the lower cost of life insurance, and the lower salaries in India.In the US, the average annual cost of employer-sponsored health insurance premiums per employee was USD 22,463 for family coverage and USD 7,911 for single coverage whereas in India, the average premium for family coverage was USD 334.54, while the average premium for personal coverage was USD 114.44.
In general, a higher minimum wage can lead to employers reducing or eliminating non-wage compensation, such as health insurance, paid time off, and retirement savings plans. This is because employers have a limited amount of money to spend on employee compensation, and they may choose to focus on wages if the minimum wage increases. For example, minimum wage in the U.S. is USD 7.25 compared to USD 2.15 in India. However, there are no mandatory paid leaves offered by employees in the US whereas employees in India get about 35 paid leaves in a year.
Supplier Newsletter
In August 2023, Epassi Group, a provider of employee benefits, has been purchased by TA Associates and Warburg Pincus with the goal of expanding its role as a pan-European leader in digital employee benefits solutions.
In June 2023, With the purchase of Benefits, an employee benefits advisory firm, together with the company's brokerage and consulting operations, Aon announced the development of the firm's Health Solutions capabilities in Chile. The acquisition considerably increases Aon's client base and the services already being offered by the company in Chile.
In March 2023, Empyrean Benefit Solutions, a U.S.-based subsidiary of Securian Financial, bought Enspire, an employee communication and engagement platform, in order to provide American businesses with employee benefit-related administration tools and sympathetic support services.
In July 2022, in order to increase its market share in the United States, Core Benefit Solutions, a provider of employee benefits, compliance, and human resource outsourcing services, was bought by Alera Group, an insurance and wealth management services company.
In May 2022, the launch of Engage, an employee engagement platform, was announced by Willis Towers Watson, a global advisory, broking, and solutions company. Engage had intended to assist organizations in understanding variations among various workforce segments, listening to employees and capturing and responding to their needs, as well as making better personnel decisions and creating more effective HR programs and work environments.
In August 2021, Up Group purchased Leeto in order to improve its offerings by adding a complementary digital service to its current offerings, including a platform that enables employees to access their benefits.
List of Key Suppliers
- Aon Hewitt
- Mercer
- Fidelity
- Met Life Inc.
- Aetna Inc.
- ACS
- Wills Tower Watson
- Marsh & McLennan Companies, Inc.
- Gallagher
- Axa S.A.
Browse through Grand View Research’s collection of procurement intelligence studies:
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- Lab Equipment Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
- Commercial Real Estate Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
Employee Benefits Procurement Intelligence Report Scope
- Employee Benefits Category Growth Rate : CAGR of 4.5% from 2023 to 2030
- Pricing Growth Outlook : 10% - 12% (Annually)
- Pricing Models : Value-based pricing model, fixed-fee pricing model, per-employee per month pricing model
- Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence
- Supplier Selection Criteria : Customization & flexibility, work benefits, financial benefits, health-related benefits, lifestyle-related benefits, employee experience, service, support, technical expertise, security measures, cost and value, support and maintenance, regulatory compliance, and others
- Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
