Number of FTEs that perform the process "process expense reimbursements" per $1 billion revenue

This measure calculates the number of full-time equivalent employees (FTEs) per $1 billion revenue that perform the "process expense reimbursement" process, which consists of processing reimbursements to employees for the expenses incurred during the course of business. Activities include approving and processing advancements and reimbursements for employee expenses on the organization's behalf, capturing and reporting relevant tax data, and managing personal accounts. This measure is part of a set of Process Efficiency measures that help companies optimize their "process expense reimbursement" process by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure Id:
101119
Total Sample Size:
3,378 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are FTEs.

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Number of FTEs who perform the process "process expense reimbursements" / (Total business entity revenue * 0.000000001)

Key Terms

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FTEs - (Full Time Equivalent Employees)

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

Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

Process Expense Reimbursements

Processing of advancements and reimbursements for employee expenses on the organization's behalf. This process often dovetails with the processing of accounts payable. This process also includes development and use of policies and procedures.

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

Process efficiency

Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Measure Scope

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Cross Industry (7.2.1)

  • 9.6.2.1 - Establish and communicate expense reimbursement policies and approval limits (10880) - Explaining policies and procedures related to reimbursements requests by employees. Set policies regarding reimbursement process and amount limits etc. Inform employees.
  • 9.6.2.2 - Capture and report relevant tax data (10881) - Collecting and reporting all pertinent information regarding the taxes paid by the organization's employees.
  • 9.6.2.3 - Approve reimbursements and advances (10882) - Permitting expense reimbursement requests from employees.
  • 9.6.2.4 - Process reimbursements and advances (10883) - Paying for expense reimbursement requests from employees. (Follow Approve reimbursements and advances [10882] according to policies and conditions.)
  • 9.6.2.5 - Manage personnel accounts (10884) - Maintaining accounts of individuals who are connected with business.