2014 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

Key Benchmarks

Expenses (as % of Net Revenues)

Profile

Revenues Expenses

Average

+25% Profit

+25% Growth

Compensation Expenses Payroll: Employee

39.7%

31.9%

40.5%

Profitability

Payroll: “Non-Employee” - 1099 Producers/Temp Help

4.3%

0.8%

3.8%

Employee Overview

Total Payroll

44.0%

32.7%

44.3%

Benefits: Payroll Taxes Benefits: Retirement

3.9% 1.4% 3.0% 0.3% 8.6%

2.7% 1.3% 0.7% 0.9% 5.6%

3.0% 1.5% 3.2% 0.2% 7.9%

Producer Info

Service Staff Info

Benefits: Insurance

Benefits: Other

Technology

Total Benefits

Insurance Carriers

Total Compensation

52.5%

38.3%

52.2%

Appendix

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.2% 1.5% 0.4% 2.0% 2.0%

0.6% 0.9% 0.0% 0.9% 2.1%

1.0% 1.5% 0.5% 2.0% 2.5%

Total Auto

Advertising/Promotions

Total Selling

5.1%

3.5%

5.5%

Operating Expenses Occupancy Expenditures

4.7% 0.4% 5.0% 0.3% 0.1% 0.4% 2.6% 0.1% 2.7% 1.3% 0.5% 1.4% 1.2% 0.8% 2.1% 0.6% 0.0% 0.6% 0.3% 0.5%

4.1% 0.1% 4.2% 0.2% 0.0% 0.2% 1.8% 0.0% 1.8% 1.0% 0.3% 1.2% 0.9% 0.5% 1.4% 0.5% 0.0% 0.0% 0.2% 0.1%

4.1% 0.1% 4.3% 0.0% 0.1% 0.1% 2.2% 0.1% 2.4% 1.2% 0.5% 1.6% 0.9% 1.7% 1.7% 0.8% 0.1% 0.9% 0.2% 0.2%

Occupancy Depreciation/Amortization

Total Occupancy

Office Equipment Expenditures Office Equipment Depreciation Total Office Equipment IT (Information Technology) IT Depreciation/Amortization

Total IT

Telephone

Postage

Supplies/Printing

2014 Best Practices Study

Dues/Subscriptions/Contributions

Taxes/Licenses

Agencies with Revenues Under $1,250,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

12

Miscellaneous

Total Operating

17.3%

12.4%

16.5%

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