Outsourced cost to perform the process group "redeploy and retire employees" as a percentage of total process group cost

This measure calculates the percentage of the total cost to perform the process group "redeploy and retire employees" that comes from outsourced cost. Activities in this process group include promotion/demotion/transfer processing, separation/retirement process, leave of absence administration, employee outplacement, and relocation. 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 Supplemental Information measures that help companies evaluate additional variables not covered elsewhere for the "redeploy and retire employees" process.

Benchmark Data


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Measure Category:
Supplemental Information
Measure Id:
Total Sample Size:
1,153 All Companies
Key Performance

Compute this Measure

Units for this measure are percent.

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(Outsourced cost to perform the process group "redeploy and retire employees" / Total cost to perform the process group "redeploy and retire employees") * 100

Key Terms

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Process Cost Components

Total cost for a process, process group, or function consists of the following five components.

Internal/In-house operating cost consists of the first four components (personnel, systems, overhead, and other).

Personnel Cost

Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.

Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.

Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.

Systems Cost

Systems costs include all expenses, paid or incurred, in conjunction with:
Computer hardware or computer software acquired by the organization or provided to the organization through service contracts.

Any related costs to process, service and maintain computer hardware or computer software. The costs of providing and maintaining services for each applicable process (e.g., computer system(s) processing (CPU) time, network/system communication charges, maintenance costs for applications and data storage). This includes the costs related to LANs, WANs, etc. This does not include one-time costs for major new systems developments/replacements. Consultant fees should not be included in depreciation of new system implementations. Include only those costs that occur more than six (6) months after implementation, as normal system maintenance costs. Any systems cost (e.g., maintenance) which is outsourced to a third party supplier should be captured in the separate cost category labeled outsourced cost.

Systems cost should include all salaries, overtime, employee benefits, bonuses or fees paid to full-time, part-time or temporary employees or independent contractors who perform services relating to computer hardware, computer software, processing or systems support.

Overhead Costs

For the purpose of this study, provide the total actual overhead costs for the year related to the specified process. These are costs that cannot be identified as a direct cost of providing a product or a service. Include the primary allocated costs such as occupancy, facilities, utilities, maintenance costs, and other major costs allocated to the consuming departments. Exclude systems costs that are allocated, since these will be captured separately as systems cost.

Other Cost

Other costs are costs associated with the specified process, but not specifically covered in personnel cost, systems cost, overhead cost and outsourced cost in this questionnaire. These other costs include costs for supplies and office equipment, travel, training and seminars. Include the cost of telephones, except for that portion captured in systems cost.

External/Outsourced Cost

In determining outsourced cost, include the total cost of outsourcing all aspects of the specified process to a third-party supplier. Exclude one-time charges for any type of restructuring or reorganization. Outsourced costs should also include costs for intracompany outsourcing (i.e., reliance on a shared services center or other business entity).

Supplemental Information

Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.

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.

Measure Scope

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Cross Industry (7.3.0)

  • 7.6.1 - Manage promotion and demotion process (10512) - Administering the process of promoting and demoting employees. Design a system for advancing or demoting an employee's rank or position. Leverage techniques such as horizontal promotion, vertical promotion, dry promotion, and involuntary/voluntary demotion.
  • 7.6.2 - Manage separation (10513) - Managing the process of employee separation, including resignations, discharges, and layoffs. Inform the employee of the termination. Complete paperwork for continuation of benefits.
  • 7.6.3 - Manage retirement (10514) - Managing and administering instances where a person stops employment completely.
  • 7.6.4 - Manage leave of absence (10515) - Managing the period of time that an employee must be away from their primary job, while maintaining the status of employee (i.e., paid and unpaid leave of absence but not vacations, holidays, hiatuses, sabbaticals, and work-from-home programs).
  • 7.6.5 - Develop and implement employee outplacement (10516) - Helping former employees transition to new jobs or to re-orient themselves in the job market. Deliver help through one-on-one sessions or in a group format. Provide guidance in career evaluation, resume writing, interview preparation, developing networks, and job searching.
  • 7.6.6 - Manage workforce scheduling (20132) - Organizing the workforce so that all positions are covered for all shifts with the necessary skilled resources in place. Have a system in place to backfill positions while an employee is on leave.
    • - Receive required resources/skills and capabilities (20133) - Obtaining resources necessary to fill a position utilizing specific skills and capabilities.
    • - Manage resource deployment (10517) - Allocating employees. Deploy personnel to ensure that the labor of the organization is continuously in an optimal relation to the jobs and organizational structure.
  • 7.6.7 - Relocate employees and manage assignments (17055) - Managing the relocation of employees in order to carry out assignments. Manage internal business processes to transfer employees, their families, and/or entire departments of a business to a new location.
    • - Manage expatriates (10520) - Managing foreign resources. Manage employees who are sent to live abroad for a defined time period, as well as non-native employees.