Procurement Market Intelligence Report
Compensation & Benefits Planning Services
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Compensation & Benefits Planning Services Global Overview
Definition
Summary
Compensation and benefits planning services assist with the development, communication, and implementation of staff benefits programs and compensation systems. Benefits planning may include evaluating a firm’s retirement plans, health insurance, vacation pay, and employee stock options. Compensation planning refers to the development of a firm’s wage or salary programs and structures. Key buyers include healthcare firms, financial and educational institutions, and government agencies.
This Report Includes:
- Wage & Salary Program Evaluation
- Retirement Plan Evaluation
- Health Insurance Evaluation
- Vacation Pay Evaluation
- Employee Stock Options Evaluation
Not in this Report:
- Human Resources Consulting
- Outplacement Services
Global Compensation & Benefits Planning Services Procurement Trends
Discover the top international trends affecting procurement in the global Compensation & Benefits Planning Services market.
Neutral
GSA memo asks agencies to review consulting contracts
- The General Services Administration (GSA) recently issued a memorandum asking government agencies to review their consulting contracts with the ten highest-paid firms. The ten firms are Accenture PLC (Accenture Federal Services), Booz Allen Hamilton Inc., CGI Group Inc. (CGI Federal), Deloitte Touche Tohmatsu (Deloitte Consulting), General Dynamics Corporation (General Dynamics IT), Guidehouse Inc., Huntington Ingalls Industries Inc. (HII Mission Technologies), International Business Machines Corporation (IBM), Leidos Holdings, Inc., and Science Applications International Corporation, Inc. (SAIC).
- The memo states that agencies are strongly encouraged to cut non-essential consulting contracts, providing a list of those intended to be terminated by March 7, 2025. By April 19, 2025, agencies must submit their reviews of non-GSA consulting service contracts.
- According to the GSA, the ten consulting firms identified are set to receive $65.0 billion in fees in 2025. The Department of Defense (DoD) has stated its intention to terminate or descope contracts non-essential to the DoD’s purposes; some of the largest market players with high-value DoD contracts include Booz Allen Hamilton, Deloitte, and Accenture.
- According to the Government Accountability Office, in the fiscal year 2023, government agencies spent $478.0 billion on services, with the DoD accounting for $230.0 billion and non-defense agencies accounting for the rest. The DoD spent $21.3 billion on support, professional, and engineering and technical services, while non-defense agencies spent $21.4 billion on professional services, which includes consulting, training, and support services.
- The Department of Veterans Affairs (VA) initially cancelled 875 contracts (amounting to around $2.0 billion) but has currently paused efforts. However, contract terminations across most agencies are expected to continue.
Global Compensation & Benefits Planning Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 89,130 |
| #2 Europe | 82,500 |
| #3 United States | 63,350 |
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Geography Drilldown - US, Canada & Europe
Average Cost of Compensation & Benefits Planning Services
United States
2026 Market Pricing$100.00 to $XXX.XX
per consultant per hourCanada
Europe
Average Price
Prices in the Compensation & Benefits Planning Services market range from $100.00 to $XXX.XX, depending on Consultant Seniority, Contract Type, Complexity of the Buyer's Operations and Supplier's Reputation. For example, lower prices are associated with Junior consultants ($100 to $250 per hour), whereas higher prices are associated with Experienced consultant ($250 to $550 per hour).
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Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Compensation & Benefits Planning Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Compensation & Benefits Planning Services market, prices in the US have grown 1.5% from 2022 to 2025. and +1.3% in Europe.
United States (2022-2025)
Canada (2017-2020)
Compound Annual Growth Rate
Europe (2022-2025)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Compensation & Benefits Planning Services
Total cost of ownership is Medium in the Compensation & Benefits Planning Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Scope Changes may raise the total cost of ownership unexpectedly.
Negotiated Before
Transportation
Billed During
Additional Fees
Unforeseen
Scope Changes
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to 0.3 in the United States. Buyer power is most positively impacted by Forecast Price Trend. It is most negatively impacted by Recent Price Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Canada
Europe
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Computer & Packaged Software Wholesalers
- Commercial Real Estate Lessors
- Office Stationery Wholesalers
2nd
Tier Suppliers
- Computer Manufacturers
- Real Estate Sales & Brokerage Firms
- Office Stationery Manufacturers
Biggest Compensation & Benefits Planning Services Suppliers in the US by Revenue
The largest Compensation & Benefits Planning Services vendors by revenue in the US are Arthur J. Gallagher & Co., The Blackstone Group L.P. and Aon Plc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Aon Plc | DUBLIN 2 | >10,000 | 10-15 | |||||
| Marsh & Mclennan Companies, Inc. | Global | NEW YORK | >10,000 | < 5 | ||||
| Automatic Data Processing, Inc. | Global | ROSELAND, NJ | >10,000 | < 5 | ||||
| The Blackstone Group L.P. | New York, NY | 1,001-10,000 | < 5 | |||||
| Arthur J. Gallagher & Co. | Global | ROLLING MEADOWS, IL | >10,000 | < 5 | ||||
| Xerox Corporation | Global | NORWALK, CT | >10,000 | < 5 | ||||
| Korn | Global | LOS ANGELES | 1,001-10,000 | < 5 | ||||
| Deloitte Touche Tohmatsu | Global | London, UK | >10,000 | < 5 | ||||
| EY | Global | London, UK | >10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Compensation & Benefits Planning Services market is 6.9% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Market share concentration is low, indicating that the top four players make up less than 30.0% of market revenue. This is mainly due to low barriers to entry, which allows for new vendors to easily enter the market, thereby making it more difficult for any individual supplier to dominate.
Market suppliers purchase goods and services for their operations infrequently on an ad hoc basis, so any changes in the price or availability of these inputs rarely affect the continuity of vendors’ operations. Therefore, supply chain risk is low in this market.
The average vendor’s financial risk is moderate. While there are many large multiline suppliers that have a minimal risk of bankruptcy, there are also many specialist suppliers that are more susceptible to financial risk, particularly during economic downturns when key buyers’ demand for market services generally declines.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises.
Supplier Information
Aon Plc
Aon plc is engaged in the marketing and servicing of a range of management and financial services spanning risk managementm insurance and reinsurance brokerage, and human resource consulting and outsourcing. Its business is divided into two segments: Risk Solutions (risk management through insurance advisory,... Subscribe to learn more
Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co. is a public company operating globally in the finance and insurance and professional, scientific and technical services sectors. The company's offerings include risk management consulting services, compensation & benefits planning services, insurance claims processing services, professional... Subscribe to learn more
Automatic Data Processing, Inc.
Automatic Data Processing, Inc. is a public company operating globally in the information, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include recruitment software, human resources software, aca compliance... Subscribe to learn more
Deloitte Touche Tohmatsu
Deloitte Touche Tohmatsu is a private company operating globally in the mining, finance & insurance, professional, scientific & technical services, administration, business support and waste management services and educational services sectors. The company's offerings include oil & gas field consulting services,... Subscribe to learn more
EY
EY is a private company operating globally in the mining, finance & insurance, professional, scientific & technical services and administration, business support and waste management services sectors. The company's offerings include oil & gas field consulting services, management consulting services, environmental,... Subscribe to learn more
Korn
Korn Ferry is a global organizational consulting firm. It operates through its five business lines: the Consulting business, which includes Organization Strategy, Assessment and Succession, Leadership and Professional Development, and Total Rewards; the Digital business, which builds, sells, and delivers Subscribe to learn more
Marsh & Mclennan Companies, Inc.
Marsh & McLennan Companies, Inc. is an insurance and advisory services provider to commercial and consumer clients. It organizes its products into two segments: the Risk and Insurance Services segment, which delivers risk management activities, insurance, and reinsurance broking and services, and the Consulting... Subscribe to learn more
Pricewaterhousecoopers Llp
Pricewaterhousecoopers Llp is a private company operating globally in the finance & insurance, professional, scientific & technical services, administration, business support and waste management services and educational services sectors. The company's offerings include management consulting services, environmental,... Subscribe to learn more
The Blackstone Group L.P.
The Blackstone Group L.P. is a public company operating in the professional, scientific and technical services sector. The company's offerings include compensation & benefits planning services. Founded in 1900, the company is currently headquartered in New York, New York, United States of America with an... Subscribe to learn more
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Procurement Management KPIs for the Compensation & Benefits Planning Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Customer Retention Rate and Customer Satisfaction (CSAT). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Fees at Risk and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Customer Retention Rate |
|
Number of customers at start of period Number of customers at end of period Number of customers added within period |
A high retention rate indicates that previous buyers have been satisfied with service, and are willing to spend more money with the firm on additional services in the future. This indicator can summarize the overall quality of service provided. |
| Customer Satisfaction (CSAT) |
|
Client reviews Number of positive client reviews |
The customer satisfaction rate can be used as an indicator to assess the vendor's performance in past services. High overall customer satisfaction may indicate that the vendor is able to provide quality service, and that buyer's were satisfied with their purchase. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Qualifications
How long have you been in business? How far-reaching are your operations on a global scale?
What steps have you taken to bolster your firm's reputation in the market?
Recent Developments
Do you source materials with a high exposure to market disruptions?
How does your business cope with any disruptions?
Timeliness
What are your primary metrics for internal quality measurements regarding timeliness? Is this data available to clients?
How often do you experience problems with the timeliness of service completion?
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Compensation & Benefits Planning Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should give an overview of their organization, including their industry, number of employees, location(s), and type of ownership.
Buyers should briefly describe the types of services required.
Statement Of Need
Buyers should provide a detailed description of the project, which may include a review of job functions, analysis of salary ranges, and evaluation of health insurance plans.
Buyers should set minimum qualifications for operators' personnel.
Project Budget
Buyers should disclose the overall budget for the project, if relevant.
Buyers should state their preferred pricing model and terms of payment.
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
