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

This measure calculates personnel cost per $1,000 business entity revenue to perform the process group "develop and counsel employees". 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. The Process group "develop and counsel employees" includes [Assisting employees in developing their capabilities, and providing them counseling services. Handle the orientation and deployment of the employees. Administer the performance of employees. Administer the development and enhancement of the employees. Provide training and development programs for employees. Manage employee relations.]. This Cost Effectiveness measure is intended to help companies understand this cost expenditure related to the process group "Develop and counsel employees".

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure ID:
104581
Total Sample Size:
1,177 All Companies
Performers:
25th
- Median
- 75th
-
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are dollars.

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(Personnel cost to perform the processes "manage employee orientation and deployment", "manage employee performance" and "manage employee relations" + Personnel cost to perform the processes "manage employee development" and "develop and train employees") / (Total business entity revenue * 0.001)

Key Terms

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Total Annual Revenue/Net Revenue

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

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

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, 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 (7.0.4)

  • 7.3.1 - Manage employee orientation and deployment (10469) - Creating and maintaining various employee on-boarding programs typically known as induction programs in order to ensure that the new employees are effectively introduced to the organization and its existing employees. Examine and evaluate the performance of these induction programs. Execute these programs on the ground level.
    • 7.3.1.1 - Create/maintain employee on-boarding program (10474) - Creating and maintaining a mechanism through which new employees acquire the necessary knowledge, skills, and behaviors to become effective organizational members and insiders. Conduct formal meetings, lectures, videos, printed materials, and/or computer-based orientations to introduce newcomers to their new jobs and the organization.
    • 7.3.1.2 - Evaluate the effectiveness of the employee on-boarding program (11243) - Assessing the performance and effectiveness of employee on-boarding program. Examine the performance of on-boarding program through feedback and reviews from the new employees. Create web and written forms. Obtain information through face-to-face discussions.
    • 7.3.1.3 - Execute onboarding program (17050) - Bringing the employee on-boarding program into effect. Implement Create/Maintain employee on-boarding program [10474]. Conduct training sessions and employee engagement programs.
  • 7.3.2 - Manage employee performance (10470) - Defining individual performance objectives. Review performance in order to provide appraisals. Evaluate the efficiency and effectiveness of the current performance program. Update it regularly.
    • 7.3.2.1 - Define employee performance objectives (10479) - Outlining the objectives for employee performance. Establish key performance objectives and measures such as customer-focus objectives, financially focused objectives, and employee growth objectives.
    • 7.3.2.2 - Review, appraise, and manage employee performance (10480) - Refurbishing, appraising, and managing the performance of employees. Create performance reviews for all the employees by qualitatively and quantitatively measuring them. Use the reviews to provide performance appraisals. Monitor under-performing employees.
    • 7.3.2.3 - Evaluate and review performance program (10481) - Assessing and revamping performance programs, including the instruments used to measure employee performance standards. Review and upgrade these performance programs to avoid any deprivations and ensure effectiveness.
  • 7.3.3 - Manage employee development (10472) - Establishing employee development guidelines. Lay out career paths and plans for them. Manage the development of their skills to enhance their skills, ability, and knowledge.
    • 7.3.3.1 - Define employee development guidelines (10487) - Outlining the guidelines for development of employees. Design development policies and procedures to identify areas of growth for employees, either in their current position or in preparation for future roles. Include topics related to knowledge and skill development.
    • 7.3.3.2 - Develop employee career plans and career paths (10488) - Designing a future career path for the employees that encourages them to explore and gather information.
    • 7.3.3.3 - Manage employee skill and competency development (17051) - Administering the development of employee skills. Conduct training, coaching and mentoring, job-rotation and cross training, lateral moves, etc.
  • 7.3.4 - Develop and train employees (10473) - Creating a link between employee and organizational development needs. Conduct and manage employee training programs by considering the need and availability of these programs.
    • 7.3.4.1 - Align employee with organization development needs (10490) - Aligning the needs of the employees to development needs.
    • 7.3.4.2 - Define employee competencies (16940) - Defining the skills, knowledge, abilities, and attributes needed to carry out a specific job.
    • 7.3.4.3 - Align learning programs with competencies (10491) - Aligning the learning programs with the core capabilities and competencies of the organization. Contextualize the training programs so that employees can expand their knowledge base and add new skills in line with the core competencies of the organization.
    • 7.3.4.4 - Establish training needs by analysis of required and available skills (10492) - Determining the training necessitated by business processes, using an examination of skill sets that are needed by the organization and those already possessed. Examine the various skills required by individual employees. Design training in light of the availability of resources to provide specific segments of training.
    • 7.3.4.5 - Develop, conduct, and manage employee and/or management training programs (10493) - Creating, implementing, and managing the programs for training employees. Create and design sessions on the basis of the needs and the availability of the skills. Conduct the sessions on the ground. Manage all aspects related to the training programs. Consider including literacy training, interpersonal skills training, technical training, problem-solving training, diversity or sensitivity training, etc.
    • 7.3.4.6 - Manage examinations and certifications (20125) - Managing identified training programs for employees. Engage with industries to provide certifications, administer certification test, and maintain active certification.
      • 7.3.4.6.1 - Liaise with external certification authorities (20126) - Coordinating with third party certification authorities to provide training and certifications for necessary skills.
      • 7.3.4.6.2 - Administer certification tests (20127) - Providing tests to the workforce that will satisfy completion of certifications.
      • 7.3.4.6.3 - Appraise experience qualifications (20128) - Ascertaining the experience level needed to qualify for a specific job or certification within the organization. Some certificates require practical experience as well as training programs.
      • 7.3.4.6.4 - Administer certificate issue and maintenance (20129) - Administering certificates to all candidates that have successfully met experience qualifications, and passed all tests necessary to obtain the certificate.