2014 Best Practices Study

Analysis of Agencies with Revenues Over $25,000,000

Key Benchmarks

Expenses (as % of Net Revenues)

Profile

Revenues Expenses

Average

+25% Profit

+25% Growth

Compensation Expenses Payroll: Employee

53.7%

48.8%

53.1%

Profitability

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

2.3%

1.2%

2.2%

Employee Overview

Total Payroll

56.0%

50.1%

55.3%

Benefits: Payroll Taxes Benefits: Retirement

3.0% 2.0% 3.1% 0.8% 8.8%

2.4% 1.7% 2.5% 1.9% 8.5%

3.1% 2.4% 3.2% 0.3% 9.0%

Producer Info

Service Staff Info

Benefits: Insurance

Benefits: Other

Technology

Total Benefits

Insurance Carriers

Total Compensation

64.8%

58.6%

64.4%

Appendix

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

2.5% 0.7% 0.1% 0.7% 1.0%

2.3% 0.7% 0.0% 0.8% 0.7%

3.1% 0.5% 0.0% 0.5% 1.2%

Total Auto

Advertising/Promotions

Total Selling

4.2%

3.8%

4.8%

Operating Expenses Occupancy Expenditures

3.4% 0.2% 3.6% 0.4% 0.4% 0.8% 1.5% 0.4% 1.9% 0.6% 0.3% 0.6% 0.7% 0.3% 1.3% 1.3% 0.1% 1.0% 0.3% 0.5%

3.2% 0.2% 3.3% 0.4% 0.4% 0.8% 1.4% 0.4% 1.7% 0.5% 0.2% 0.6% 0.6% 0.3% 1.2% 1.2% 0.1% 0.9% 0.3% 0.3%

3.7% 0.2% 3.8% 0.5% 0.5% 0.9% 1.4% 0.5% 1.8% 0.6% 0.3% 0.4% 0.8% 0.3% 1.0% 1.5% 0.1% 1.3% 0.4% 0.4%

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 Over $25,000,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

142

Miscellaneous

Total Operating

13.3%

12.0%

13.7%

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