US Insurance carrier industry

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Part
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Industry Benchmarks - Insurance Carrier HR Metrics

The benchmarks for turnover rates for Berkshire Hathaway Inc., Progressive Group of Insurance Companies, and Allstate Insurance Company are 1.91%, 3.81%, and 3.21%, respectively.

Berkshire Hathaway Inc

  • Led by Warren Buffet, the world’s third richest billionaire as of 2019, Berkshire Hathaway Inc. is an American multinational conglomerate headquartered in Omaha, Nebraska, which engages in insurance, freight rail transportation, and utility businesses.
  • It provides property and casualty insurance and reinsurance, as well as life, accident, and health reinsurance; and operates railroad systems.
  • Generating over $247.8 billion U.S. dollars in total revenue in the fiscal year 2018, Berkshire Hathaway is currently the leading property and casualty (stock) insurance company in the world.
  • Staffed by more than 385,000 employees worldwide, Berkshire Hathaway was ranked seventh among the 100 largest companies in the world by market value.
  • Turnover rate = 1.91%
  • Time to hire = 30 days (approx.)
  • Cost per hire = $4,129. (on average)
  • Revenue Per Employee = $637,018 per employee

Progressive Group of Insurance Companies

  • Progressive campuses across the United States, with others located in Progressive field, claims offices in more than 250 locations.
  • Turnover rate = 3.81%
  • Time to hire = 30 days (approx.)
  • Cost per hire = $4,129. (on average)
  • Revenue Per Employee = $856,852 per employee

Allstate Insurance Company

  • Allstate Insurance Company provides insurance services. The Company offers home security, business, supplemental health, long-term care, boat, flood, identity theft expenses, and motor home insurance products.
    • Turnover rate = 3.21%
    • Time to hire = 30 days (approx.)
    • Cost per hire = $4,129. (on average)
    • Revenue Per Employee = $881,701.4 per employee
    • The amount of budget that is spent on making a hire is known as cost per hire and according to a recent survey from Society of Human Resource Management (SHRM), the average CPH is $4,129.

    Research Strategy

    We started our research by looking at the selected companies' websites where we found information about Berkshire Hathaway Inc, Progressive Group of Insurance Companies, and Allstate Insurance Company. Although on these companies' websites, we did not find statistics or financial reports, employees information, turnover rate, and time to hire or cost per hire, we were able to find detailed information about these companies.

    Because of this, we had to search further and look at several other websites for statistics or financial reports, employees information, turnover rate, time to hire and cost per hire concerning these companies. We searched through news website, blog websites, investment reporting websites, financial reporting and statistics websites such as Statista, Craft.co, Investopedia, and Fortune. We were able to find a wealth of information and data that we were looking for, then pieced the data together and triangulated with the available information and data we could extract from these sources. We then made our calculations and estimations as follows:

    CALCULATIONS

    Berkshire Hathaway Inc

    Turnover rate calculated as:
    Employees at beginning of the year 2018: 385,000
    Employees at the end of the year 2018: 385,000 + 4% employee growth =
    385,000 x 4 -:- 100 = 15,400
    = 385,000 + 15,400 = 400,400
    Average number of employees: (385,000 + 400,400)/2 = 392,700
    Number of employees who left year 2018: 7500 (est.)
    Turnover rate: 7500/392,700 = 1.91%
    Time to hire = 30 days (approx.)
    Cost per hire = $4,129. (on average)
    Revenue per employee (RPE) = total revenue divided by its current number of employees
    Total revenue FY2018 = $247,800,000,000
    Number of Employees = 385,000
    RPE = TR -:- NE
    RPE = 247,800,000,000 -:- 389,000
    Revenue Per Employee = $637,018 per employee

    Progressive Group of Insurance Companies

    Turnover rate calculated as:
    Employees at beginning of the year 2018: 37,346
    Employees at the end of the year 2018: 37,346 + 11% employee growth =
    37,346 x 11 -:- 100 = 4108.06
    = 37,346 + 4108.06 = 41,454.06
    Average number of employees: (37,346 + 41,454.06)/2 = 39,400.03
    Number of employees who left year 2018: 1500 (est.)
    Turnover rate: 1500/39,400.03 = 3.81%
    Time to hire = 30 days (approx.)
    Cost per hire = $4,129. (on average)
    Revenue per employee (RPE) = total revenue divided by its current number of employees
    Total revenue FY2018 = $32,000,000,000
    Number of Employees = 37,346
    RPE = TR -:- NE
    RPE = 32,000,000,000 -:- 37,346
    Revenue Per Employee = $856,852 per employee

    Allstate Insurance Company

    Turnover rate calculated as:
    Employees at beginning of the year 2018: 45,140
    Employees at the end of the year 2018: 45,140 + 7% employee growth =
    45,140 x 7 -:- 100 = 3,159.8
    = 45,140 + 3,159.8 = 48,299.8
    Average number of employees: (45,140 + 48,299.8)/2 = 46,719.9
    Number of employees who left year 2018: 1500 (est.)
    Turnover rate: 1500/46,719.9 = 3.21%
    Time to hire = 30 days (approx.)
    Cost per hire = $4,129. (on average)
    Revenue per employee (RPE) = total revenue divided by its current number of employees
    Total revenue FY2018 = $39,800,000,000
    Number of Employees = 45,140
    RPE = TR -:- NE
    RPE = 39,800,000,000 -:- 45,140
    Revenue Per Employee = $881,701.4 per employee


    Sources
    Sources