Personnel cost to perform the process "develop and train employees" per business entity employee

This measure calculates personnel cost per business entity employee to perform the process group "develop and train 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 "develop and train employees" includes [Creating a link between employee and organizational development needs. Conduct and manage employee training programs by considering the need and availability of these programs. ]. This Cost Effectiveness measure is intended to help companies understand this cost expenditure related to the process "Develop and train employees".

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure ID:
104584
Total Sample Size:
1,319 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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Internal personnel cost to perform the process "develop and train employees" / Number of business entity employees

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.

For survey purposes, a business entity is defined as an entity that:

  1. performs significant aspects of the processes for the surveys identified, or
  2. is part of a cost or revenue center within the company.

Within your organization, diverse departments may be geographically co-located, with closely integrated operations that form part of one "business entity" which may be a great distance apart. When trying to determine if related parts of your operation should be considered a single business entity, look for the following characteristics:

  • Do they operate closely together?
  • Do they serve many of the same customers?
  • Do they support the same region or product group?
  • Do they share any performance measures?
  • Is data meaningful at a consolidated level?

Examples of business entity definition:

  1. A general ledger accounting unit located in Germany has two groups. One performs general ledger accounting for the corporate headquarters, which has three business units. The other group does general ledger accounting for one of the three business units. In spite of their geographic co-location, their roles are substantially different and consolidating their data into a single response would make it less meaningful. Each group should be treated as a separate business entity.
  2. Three business units within a corporation use a shared services center for accounts payable and expense reimbursement, but are self-supporting for the other financial processes. The best approach is to make the shared services centre a separate business entity for accounts payable and expense reimbursement, and to retain the three original business units for the other financial processes.
  3. A global manufacturing company has five plant locations, each manufacturing product and each with its own logistics operations. For purposes of completing a manufacturing and logistics survey, they should be treated as five separate business entities.

Measure Scope

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Cross Industry (7.3.1)

  • 7.3.4.1 - Align employee with organization development needs (10490)
  • 7.3.4.2 - Define employee competencies and skills (16940)
  • 7.3.4.3 - Align learning programs with competencies and skills (10491)
  • 7.3.4.4 - Establish training needs by analysis of required and available skills (10492)
  • 7.3.4.5 - Develop, conduct, and manage employee and/or management training programs (10493)
  • 7.3.4.6 - Manage examinations and certifications (20125)
    • 7.3.4.6.1 - Liaise with external certification authorities (20126)
    • 7.3.4.6.2 - Administer certification tests (20127)
    • 7.3.4.6.3 - Appraise experience qualifications (20128)
    • 7.3.4.6.4 - Administer certificate issue and maintenance (20129)
  • 7.3.4.7 - Monitor and evaluate learning programs (21436)