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KPI for Measuring of Average Labour Cost vs. Forecast posted in category HR

WinningKPI - HR - KPI for Measuring of Average Labour Cost vs. Forecast posted in category HR

KPI details:

This indicator is for measuring of Average Labour Cost vs. Forecast process;

More details: Measure total employment vs. Forecast of the period.

KPI units: Measured as a variance over base line amount.

KPI time frame: update once a month

Posted by Sean Preusse | Help to protect community: Flag for moderation

Ideas suggested by WinningKPI community:

Here are comments:

To measure total employment cost vs. forecast, I would include on-cost elements such as payroll tax, workers comp, additional employee benefits, long service leave and annual leave.

By including additional amounts, unless recorded in your HRIS or other financial system, I like to base total employment costs as an expected cost for convenience and like for like comparison. This is similar to a cost to serve template where on a monthly basis, the number of employee's are entered, base salary is entered and total cost is completed by dividing base salary by 12. From base salary you can add additional components such as those mentioned above which would split the total calculation into four main parts; Salary, Super, On-Costs and Bonus paid.

If this same method is used in the budget process at the end of the prior year, you can look at generating a forecast of which to compare to, noting that variations should be considered to be in line with any formal pay increases.

Sean Preusse | February 1, 2012 at 11:39 pm

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