Benefit Utilisation

Benefit Utilisation

Benefit utilisation is the actual cost per employee of a benefit compared with the potential cost per employee. As not every eligible employee will take up every benefit, they are entitled to the actual cost per employee can be different from what was anticipated. A benefits package with a low utilisation may need to be reviewed in order to achieve a better rate of return for the organisation investment.

The formula used in the calculation is:

Benefit Utilisation = Total Users / Total Eligible