Percentage error for the personnel cost forecast
This measure calculates total personnel expense forecasting percentage error. It is calculated as the absolute value of ((Projected – Actual personnel expense) / Actual personnel expense) * 100. This Process Efficiency measure is intended to help companies minimize waste and refine resource consumption related to the process "Perform planning/budgeting/forecasting".
Benchmark Data
25th | Median | 75th |
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Units for this measure are percent.
Percentage error for the personnel cost forecast
Key Terms
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.
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.