142 / 168
2015 Best
Practices Study
Agencies
with Revenues
Over
$25,000,000
142
Analysis of Agencies with Revenues Over $25,000,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Note: See page 163 for an explanation of column headings
Expenses
(as % of Net Revenues)
Average
Top 25% Profit Top 25% Growth
COMPENSATION EXPENSES
Payroll: Employee
54.3%
49.2%
58.9%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
2.5%
1.1%
1.1%
Total Payroll
56.8%
50.3%
60.0%
Benefits: Payroll Taxes
3.0%
2.3%
3.1%
Benefits: Retirement
1.9%
1.9%
2.3%
Benefits: Insurance
3.1%
2.6%
2.8%
Benefits: Other
0.8%
2.0%
0.2%
Total Benefits
8.8%
8.8%
8.4%
Total Compensation
65.5%
59.0%
68.5%
SELLING EXPENSES
T&E/Conventions
2.6%
2.1%
3.1%
Auto Expenditures
0.6%
0.7%
0.7%
Auto Depreciation
0.1%
0.0%
0.0%
Total Auto
0.7%
0.7%
0.8%
Advertising/Promotions
0.9%
0.8%
0.9%
Total Selling
4.2%
3.6%
4.7%
OPERATING EXPENSES
Occupancy Expenditures
3.3%
3.2%
3.3%
Occupancy Depreciation/Amortization
0.3%
0.1%
0.4%
Total Occupancy
3.6%
3.3%
3.7%
Office Equipment Expenditures
0.5%
0.3%
0.4%
Office Equipment Depreciation
0.4%
0.3%
0.5%
Total Office Equipment
0.8%
0.6%
1.0%
IT (Information Technology)
1.5%
1.5%
1.2%
IT Depreciation/Amortization
0.4%
0.5%
0.2%
Total IT
2.0%
2.0%
1.4%
Telephone
0.5%
0.4%
0.4%
Postage
0.3%
0.2%
0.3%
Supplies/Printing
0.6%
0.4%
0.6%
Dues/Subscriptions/Contributions
0.7%
0.6%
0.8%
Taxes/Licenses
0.4%
0.3%
0.3%
Insurance
1.2%
1.1%
1.1%
Professional Fees
1.4%
0.7%
1.1%
Bad Debts
0.1%
0.1%
0.0%
Outside Services
1.0%
0.6%
0.9%
Education/Training
0.3%
0.3%
0.3%
Miscellaneous
0.4%
0.3%
0.1%
Total Operating
13.4%
10.9%
12.0%
continued on next page