HR & Benefits Administration

BARRIERS TO ENTRY
High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor. MYsland LLC uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $ 0.333 of capital to $ 1 of labor; medium is $ 0.125 to $ 0.333 of capital to $ 1 of labor; low is less than $ 0.125 of capital for every $ 1 of labor.

CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the "real" growth or decline in industry metrics. The inflation adjustments in M-Ysland LLC`s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers and executives within the industry.

BENEFITS ADMINISTRATION
The creation and management of employee benefits.

HRM
An abbreviation for the set of services known as human resource management.

NONEMPLOYER
A small enterprise that does not employ any personnel (i.e. a self-employed company owner).

THIRD-PARTY ADMINISTRATOR
A company that processes certain aspects of employee benefit plans for another party.

Over the five years to 2022, industry operators have experienced strong demand from small and midsize businesses. As corporate profit increased during the period, an increasing number of companies chose to focus on core activities and outsource unrelated functions. Moreover, changing healthcare regulations have increased the number of midsize businesses that offer coverage, advancing demand for benefits administration services.
Companies that fare best offer a variety of outsourcing services, including functions accounted for in other industries, such as the Tax Preparation Services industry (M-Ysland LLC report 54121d), the Accounting Services industry (54121c) and the Payroll and Bookkeeping Services industry (54121b). While this revenue is not relevant to the Human Resources and Benefits Administration industry, offering clients other services enables industry operators to be their one-stop-shop providers.
The industry is expected to continue its growth moving forward, with revenue increasing at an annualized rate of 1.4% to $ 93.4 billion over the five years to 2027. Revenue is expected to be bolstered by a rejuvenated economy and declining unemployment rate. Furthermore, downstream customers are expected to continue outsourcing tasks not related to their core business so as to better compete in their respective markets. This will likely be aided by rising corporate profit over the five years to 2027. Conversely, profit, measured as earnings before interest and taxes, is expected to decrease, reaching 10.2% of industry revenue in 2027.