# Number of business entity employees per FTE that performs the process group "reward and retain employees"

This measure calculates the number of business entity employees per full-time equivalent (FTE) employee that performs the process group "reward and retain employees," which consists of compensation administration, award/incentive administration, employee assistance, benefits administration, and payroll processing. It is a Staff Productivity measure that helps companies assess the efficiency of their staff related to the process "reward and retain employees."

## Benchmark Data

Measure Category:
Staff Productivity
Measure ID:
100492
Total Sample Size:
5,057 All Companies
Performers:
25th
-
Median
-
75th
-
Key Performance
Indicator:
Yes

## Compute this Measure

Units for this measure are employees.

`Number of business entity employees / Number of FTEs who perform the process group "reward and retain employees"`

## Key Terms

#### FTE - (full-time equivalent employee)

To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.

For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:

20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting

20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting

#### Staff Productivity

Staff Productivity is a measure of the efficiency of individuals performing specific processes. Measures in staff productivity generally relate the transaction volume or outcome of the process with the effort in terms of full time equivalent employees to perform the process.

#### Median

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

#### Full-time Employee, Part-time Employee, and Temporary Employee

Full-time Employee

For the purpose of this survey, a regular full-time employee is hired for an indefinite period of time and is normally scheduled to work forty hours per week. Appointment is continuous, subject to satisfactory performance and availability of funding.

Part-time Employee

For the purpose of this survey, a regular part-time employee is hired for an indefinite period of time and is scheduled to work less than forty hours per week.

Temporary Employee

A temporary employee is employed for a finite period of time, to fulfill a time-limited role, or to fill the role of a permanent employee who is absent from work. The length of time an employee can work for the organization and be considered a temporary employee may be governed by employment legislation.

For survey purposes, a business entity is defined as an entity that:

1. performs significant aspects of the processes for the surveys identified, or
2. is part of a cost or revenue center within the company.

Within your organization, diverse departments may be geographically co-located, with closely integrated operations that form part of one "business entity" which may be a great distance apart. When trying to determine if related parts of your operation should be considered a single business entity, look for the following characteristics:

• Do they operate closely together?
• Do they serve many of the same customers?
• Do they support the same region or product group?
• Do they share any performance measures?
• Is data meaningful at a consolidated level?

1. A general ledger accounting unit located in Germany has two groups. One performs general ledger accounting for the corporate headquarters, which has three business units. The other group does general ledger accounting for one of the three business units. In spite of their geographic co-location, their roles are substantially different and consolidating their data into a single response would make it less meaningful. Each group should be treated as a separate business entity.
2. Three business units within a corporation use a shared services center for accounts payable and expense reimbursement, but are self-supporting for the other financial processes. The best approach is to make the shared services centre a separate business entity for accounts payable and expense reimbursement, and to retain the three original business units for the other financial processes.
3. A global manufacturing company has five plant locations, each manufacturing product and each with its own logistics operations. For purposes of completing a manufacturing and logistics survey, they should be treated as five separate business entities.

## Measure Scope

#### Cross Industry (7.3.0)

• 7.5.1 - Develop and manage reward, recognition, and motivation programs (21438) - Managing and executing the programs required to reward, recognize, and retain employees.
• 7.5.1.1 - Develop salary/compensation structure and plan (10498) - Creating the framework for the provision of salary/compensation to employees. Break down the salary structure into different components such as fixed pay, variable pay, bonus, and allowances such medical allowance, and rent allowance, etc. Develop, adjust, and maintain a pay structure.
• 7.5.1.2 - Develop benefits and rewards plan (10499) - Developing a plan for provision of rewards, commission, and benefits to employees. Plan health benefits, retirement benefits, non-monetary benefits, etc.
• 7.5.1.3 - Perform competitive analysis of benefits and rewards (10500) - Analyzing and evaluating the organization's benefits and rewards plan. Compare/Benchmark the benefits and employees plan with other organizations to adhere to industry standard practices.
• 7.5.1.4 - Identify compensation requirements based on financial, benefits, and HR policies (10501) - Recognizing the employee requirements for compensation on the basis of the financial, benefits, and HR policies of the organization. Recognize individual compensation requirements regarding the financial policies of the organization. Consider the benefits plan and overall HR policies while selecting compensation requirements.
• 7.5.1.5 - Administer compensation and rewards to employees (10502) - Managing the provision of compensations and rewards to the employees while maintaining consistency with the compensation and benefits plan. Follow the compensation and benefits plan rigorously in order to avoid any discrepancies.
• 7.5.1.6 - Reward and motivate employees (10503) - Rewarding and stimulating the performance efforts of employees. Create methods for motivating employees. Spur extrinsic and intrinsic motivation.
• 7.5.1.7 - Review retention and motivation indicators (10510) - Reassessing the indicators for retention and motivation of employees. Monitor the indicators that signal the levels of motivation and retention. Regularly update and upgrade indicators to avoid depreciation and ensure high efficiency.
• 7.5.1.8 - Review compensation plan (10511) - Analyzing existing compensation plans and making changes necessary to continue to retain employees.
• 7.5.2 - Manage and administer benefits (10495) - Managing and ensuring benefits enrollment by the employees. Process any benefit claims made by the employees. Balance the estimated amount and entitled amount of benefits.
• 7.5.2.1 - Deliver employee benefits program (10504) - Implementing the programs that specify employee benefits, other than salary provided, such as those concerning medical care, death, and disability.
• 7.5.2.2 - Administer benefit enrollment (10505) - Handling the employee enrollment for obtaining benefits. Manage employee enrollment and eligibility. Encourage employees to enroll for benefits.
• 7.5.2.3 - Process claims (10506) - Processing any formal requests or demands made by the employees claiming that they have earned some benefits. Send the request further up the managerial hierarchy to ensure approval.
• 7.5.2.4 - Perform benefit reconciliation (10507) - Carrying out reconciliation of benefits delivered to employees. Compare the estimated benefit requirement made by the employee and the actual amount of benefits the employee is entitled to receive.
• 7.5.3 - Manage employee assistance and retention (21439) - Managing activities centered around delivering programs to support work/life balance for employees; developing family support systems; reviewing retention and motivation indicators; and reviewing compensation plans.
• 7.5.3.1 - Deliver programs to support work/life balance for employees (10508) - Designing programs that prompt proper balance between work (i.e., career and ambition) and lifestyle (i.e., health, pleasure, leisure, family, and spiritual development/meditation). Account for dependent care, flexible working arrangements, leaves of absence, on-the-job training, etc.
• 7.5.3.1.1 - Manage flexible working (21440) - Creation and execution of a plan that might allow for work from home days, or alternate hours.
• 7.5.3.2 - Develop family support systems (10509) - Creating a support structure that aligns with local and federal laws that allow for support for families. This could include things like maternity leave, care for a family member, or in some cases, extended sick leave.
• 7.5.4 - Administer payroll (10497) - Managing the sum of all financial records of salaries for an employee, including wages, bonuses, and deductions. Use a payroll management system to deal with the financial aspects of employees' salaries, allowances, deductions, gross pay, net pay, etc. Generate pay slips for a specific period.