142 / 168
2014 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
Expenses
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expenses
Payroll: Employee
53.7%
48.8%
53.1%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
2.3%
1.2%
2.2%
Total Payroll
56.0%
50.1%
55.3%
Benefits: Payroll Taxes
3.0%
2.4%
3.1%
Benefits: Retirement
2.0%
1.7%
2.4%
Benefits: Insurance
3.1%
2.5%
3.2%
Benefits: Other
0.8%
1.9%
0.3%
Total Benefits
8.8%
8.5%
9.0%
Total Compensation
64.8%
58.6%
64.4%
Selling Expenses
T&E/Conventions
2.5%
2.3%
3.1%
Auto Expenditures
0.7%
0.7%
0.5%
Auto Depreciation
0.1%
0.0%
0.0%
Total Auto
0.7%
0.8%
0.5%
Advertising/Promotions
1.0%
0.7%
1.2%
Total Selling
4.2%
3.8%
4.8%
Operating Expenses
Occupancy Expenditures
3.4%
3.2%
3.7%
Occupancy Depreciation/Amortization
0.2%
0.2%
0.2%
Total Occupancy
3.6%
3.3%
3.8%
Office Equipment Expenditures
0.4%
0.4%
0.5%
Office Equipment Depreciation
0.4%
0.4%
0.5%
Total Office Equipment
0.8%
0.8%
0.9%
IT (Information Technology)
1.5%
1.4%
1.4%
IT Depreciation/Amortization
0.4%
0.4%
0.5%
Total IT
1.9%
1.7%
1.8%
Telephone
0.6%
0.5%
0.6%
Postage
0.3%
0.2%
0.3%
Supplies/Printing
0.6%
0.6%
0.4%
Dues/Subscriptions/Contributions
0.7%
0.6%
0.8%
Taxes/Licenses
0.3%
0.3%
0.3%
Insurance
1.3%
1.2%
1.0%
Professional Fees
1.3%
1.2%
1.5%
Bad Debts
0.1%
0.1%
0.1%
Outside Services
1.0%
0.9%
1.3%
Education/Training
0.3%
0.3%
0.4%
Miscellaneous
0.5%
0.3%
0.4%
Total Operating
13.3%
12.0%
13.7%
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