Personnel cost to perform the process group "process payroll" as a percentage of the total process group cost

This measure calculates the percentage of the total cost to perform the "process payroll" process that comes from personnel cost. The purpose of this process is to pay salaries and wages in accordance with organizational policies and government regulations. Activities include maintenance of records; calculations of salaries, wages, and deductions; and distribution of paychecks. Personnel cost refers to employee salaries/wages, bonuses, benefits, etc. This measure is part of a set of Supplemental Information measures that help companies evaluate additional variables not covered elsewhere for the "process payroll" process.

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Measure Category:
Supplemental Information
Measure ID:
103053
Total Sample Size:
1,223 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No
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Compute this Measure

Units for this measure are percent.

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(((Percentage of internal costs of the process "report time" allocated to personnel costs * Percentage of total cost to perform the process "report time" allocated to internal costs * 0.0001 * Total cost to perform the process "report time") + (Percentage of internal costs of the process "manage pay" allocated to personnel costs * Percentage of total cost of the process "manage pay" allocated to internal costs * 0.0001 * Total cost to perform the process "manage pay") + (Percentage of internal costs of the process "process payroll taxes" allocated to personnel costs * Percentage of total cost to perform the process "process payroll taxes" allocated to internal costs * 0.0001 * Total cost to perform the process "process payroll taxes")) / (Total cost to perform the process "report time" + Total cost to perform the process "manage pay" + Total cost to perform the process "process payroll taxes")) * 100

Key Terms

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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.

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.

Measure Scope

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Cross Industry (7.4)

  • 9.5.1 - Report time (10753)
    • 9.5.1.1 - Establish policies and procedures (10853)
    • 9.5.1.2 - Collect and record employee time worked (10854)
    • 9.5.1.3 - Analyze and report paid and unpaid leave (10855)
    • 9.5.1.4 - Monitor regular, overtime, and other hours (10856)
    • 9.5.1.5 - Analyze and report employee utilization (10857)
  • 9.5.2 - Manage pay (10754)
    • 9.5.2.1 - Enter employee time worked into payroll system (10858)
    • 9.5.2.2 - Maintain and administer employee earnings information (10859)
    • 9.5.2.3 - Maintain and administer applicable deductions (10860)
    • 9.5.2.4 - Monitor changes in tax status of employees (10861)
    • 9.5.2.5 - Process and distribute payments (10862)
    • 9.5.2.6 - Process and distribute manual checks (10863)
    • 9.5.2.7 - Process period-end adjustments (10864)
    • 9.5.2.8 - Respond to employee payroll inquiries (10865)
  • 9.5.3 - Manage and process payroll taxes (10755)
    • 9.5.3.1 - Develop tax plan (14075)
    • 9.5.3.2 - Manage tax plan (14076)
    • 9.5.3.3 - Calculate and pay applicable payroll taxes (10866)
    • 9.5.3.4 - Produce and distribute employee annual tax statements (10867)
    • 9.5.3.5 - File regulatory payroll tax forms (10868)