1. Human Resources
  2. Compensation & Benefits

Benefit Utilization Rate

Percentage

Quantifies the percentage of employees making use of a specific benefit provided by the company. Offering benefits is only effective if employees utilize them. Monitoring the utilization rate helps companies adjust their benefits package, ensuring they invest in perks that are meaningful to employees.

Formula

(Number of employees using a particular benefit / Total number of eligible employees) x 100

Example

If a company offers gym memberships to 100 employees, and 70 of them sign up, the utilization rate is 70%.