Personnel cost to perform the process group "process payroll" per employee paid

This measure calculates personnel cost per employee paid to perform the process group "process process payroll," which consists of the payment of 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 Cost Effectiveness measures that help companies understand all cost expenditures related to the "process payroll" process.

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure ID:
106161
Total Sample Size:
1,156 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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((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 number of employees paid

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.

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 (7.4)

  • 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)