WinningKPI - Project Management - KPI for Measuring of Ratio Total Employee Costs vs. Total Non-Employee Costs posted in category Project Management KPI details: This indicator is for measuring the ratio between employee and non-employee costs in project management. This is calculated by comparing the percentages of the both total values.
Project managers may use this KPI to plan the budget and time frame for the project. Certain types of projects may require a higher employee budget whilst others may require a higher non employee budget.
This KPI can also be used at the end of the project to assess the performance and whether the planned ratios have been met. For instance, a sharp increase in the employee cost may be due to poor project management, where the right expertise has not been planned for and the employee budget had to be increased during the project.
Formula:
Total Employee Cost %: Total Non-Employee Cost %
For instance, if a project requires a total of 75% employee cost and 25% non employee cost the ratio will be:
75:25 = 3:1, where for every $1 spend on non-employee expenditure, $3 are spend on employee expenditure.
KPI Units: % ratio
KPI Time Frame: update during or at end of project
Posted by Oana Boteanu | Help to protect community: Flag for moderation
Ideas suggested by WinningKPI community:Here are comments:
A team of 5 software designers have been handed over a project to create a new product. The total budget was of $10 000, $6000 for staff, and $4000 for other costs (information sources, programs etc.)
The ratio of employee vs. no employee costs is:
Total Employee Cost %:
6000/10 000 x 100 = 60 %
Total Non-Employee Cost %:
4000/10 000 x 100 = 40%
Total Employee Non Employee Ratio:
60: 40 hence (if we divide both numbers by 20), 3:2
For every $3 dollars spent on staff, $2 are spent on other costs
Oana Boteanu | + | September 6, 2012 at 8:43 am
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