Outsourced cost to perform the process "report time" per $1,000 revenue

This measure calculates outsourced cost per $1,000 revenue to perform the "report time" process, which consists of capturing/approving consolidated employee time information and recording data in the time reporting system for usage by payroll, benefits, billing, etc. Outsourced cost refers to the total cost of outsourcing a specific process to a third party, except one-time charges for any type of restructuring or reorganization. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the "report time" process.

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure Id:
101604
Total Sample Size:
643 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are dollars.

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(Total cost to perform the process "report time" * Percentage of total cost to perform the process "report time" allocated to external costs * .01)/(Total business entity revenue * 0.001)

Key Terms

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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.

Cost Effectiveness

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Measure Scope

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Cross Industry (7.3.0)

  • 9.5.1.1 - Establish policies and procedures (10853) - Developing policies and procedures for the HR function to calculate compensation.
  • 9.5.1.2 - Collect and record employee time worked (10854) - Tracking billing hours of each employee on daily basis.
  • 9.5.1.3 - Analyze and report paid and unpaid leave (10855) - Tracking leaves allowed and taken by employees.
  • 9.5.1.4 - Monitor regular, overtime, and other hours (10856) - Observing the number of hours worked by an employees on daily basis. Track the number of hours worked by an employee, as well as the number of hours worked beyond normal working hour's according to company standards.
  • 9.5.1.5 - Analyze and report employee utilization (10857) - Monitoring the number of productive hours for employees.