Personnel cost to perform the process group "reward and retain employees" per $1,000 revenue

This measure calculates the personnel cost to perform the process group "reward and retain employees" per $1,000 revenue. Personnel cost refers to employee personnel compensation (salaries and wages, bonuses, overtime and benefits) and fringe benefits (e.g. contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, stock purchase plans, and special allowances such as relocation expenses and car allowances). These costs should describe both full-time and salaried/hourly employees contributing to the work in question. The process group "reward and retain employees" describes the work of developing and managing reward, recognition, and motivation programs, managing and administering beliefs, managing employee assistance and retention, and administering payroll. This Cost Effectiveness measure is intended to help companies understand all cost expenditures related to the process group "reward and retain employees."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure ID:
104077
Total Sample Size:
2,128 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No

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Compute this Measure

Units for this measure are dollars.

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Personnel cost to perform the process group "reward and retain employees" / (Total business entity revenue * 0.001)

Key Terms

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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.

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.

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.

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 (7.3.1)

  • 7.5.1 - Develop and manage reward, recognition, and motivation programs (21438)
    • 7.5.1.1 - Develop salary/compensation structure and plan (10498)
    • 7.5.1.2 - Develop benefits and rewards plan (10499)
    • 7.5.1.3 - Perform competitive analysis of benefits and rewards (10500)
    • 7.5.1.4 - Identify compensation requirements based on financial, benefits, and HR policies (10501)
    • 7.5.1.5 - Administer compensation and rewards to employees (10502)
    • 7.5.1.6 - Reward and motivate employees (10503)
    • 7.5.1.7 - Review retention and motivation indicators (10510)
    • 7.5.1.8 - Review compensation plan (10511)
  • 7.5.2 - Manage and administer benefits (10495)
    • 7.5.2.1 - Deliver employee benefits program (10504)
    • 7.5.2.2 - Administer benefit enrollment (10505)
    • 7.5.2.3 - Process claims (10506)
    • 7.5.2.4 - Perform benefit reconciliation (10507)
  • 7.5.3 - Manage employee assistance and retention (21439)
    • 7.5.3.1 - Deliver programs to support work/life balance for employees (10508)
      • 7.5.3.1.1 - Manage flexible working (21440)
    • 7.5.3.2 - Develop family support systems (10509)
  • 7.5.4 - Administer payroll (10497)