One in three employer compensation dollars now goes to benefits

Paid leave cost full-time private-sector employers $4.40 per hour in June, or 8.1 percent of total compensation. Insurance, primarily health coverage, ran separately. Together, these discretionary benefit categories represent the bulk of what an employer can adjust, and what an adviser can benchmark against peers.

The full-time versus part-time split makes the benchmarking precision matter further. Full-time private-sector workers cost employers $54 per hour total, with benefits at $17.03, or 31.5 percent. Part-time workers cost $25.20 per hour, with benefits at just $5.05, or 20 percent. Paid leave alone fell from $4.40 per hour for full-timers to $0.90 for part-timers.

Employers managing a mixed workforce carry a blended benefits cost that the national average obscures, and the gap between full- and part-time benefit spend is large enough that workforce composition shifts can move total benefit costs significantly without any change to plan design.

Where geography widens the gap

Regional variation in the June data is wide enough to change the terms of any benchmarking conversation. Private-sector total compensation ranged from $41.85 per hour in the South to $54.76 in the Northeast, with the Midwest at $44.03 and the West at $51.66. Benefits carried a 31.5 percent share in the Northeast versus 28.4 percent in the South. That gap shows differences in state-mandated benefit requirements, union density, and the industry mix of each region.

Within those broad divisions, the spread widens further. The East South Central division – Alabama, Kentucky, Mississippi, and Tennessee – reported the lowest total compensation at $37.84 per hour, with benefits at $10.21. The Pacific division – California, Washington, Oregon, Alaska, and Hawaii – came in at $55.49 per hour, with benefits at $17.45. That $7.24 per-hour difference in benefit cost between two regions within the same country is meaningful context for any employer comparing themselves to a national average.