Benefits Utilisation Rate
Percentage of employees actively using available benefits (health insurance, pension, flexible working), indicating perceived value
What is Benefits Utilisation Rate?
Benefits utilisation rate is the percentage of eligible employees who use a particular benefit. It shows whether the benefits an organisation pays for are actually valued and used.
Unused benefits waste money and miss the chance to support and retain staff, so utilisation helps decide what to keep, promote or change.
How this KPI is measured
- Function
- Human Resources
- Sub-function
- Compensation & Benefits
- Industry
- All Industries
- Type
- Lagging
- Impact
- People
- Unit
- %
- Measurement frequency
- Annual
- Formula
- (Employees using benefit / Total eligible employees) × 100 per benefit
How to calculate it
For each benefit, divide the employees using it by the total eligible employees, and multiply by 100.
For example, if 300 of 1,000 eligible employees use a gym subsidy, utilisation for that benefit is 30%.
Calculate it separately for each benefit and by employee group, since needs differ by age, role and location.
Where it is used
Reviewing the benefits package
Find benefits that are not used.
Improving communication
Promote valuable but overlooked benefits.
Targeting spend
Invest in what employees want.
How to improve it
Tips and common mistakes
- Some benefits, like insurance, matter even if rarely used.
- Look at differences between groups.
- Respect privacy when reporting use.
More Human Resources kpi library
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