Saratoga Institute
Regular Employees Compensation Expense Percent Reglar Compensation Cost / Operating Expense = 29.3%
Definitions Regular Compensation CostTotal compensation costs incurred by the reporting unit during the reporting period for regular full-time and part-time employees, including regular pay, overtime pay, pay premiums, commissions, performance related bonuses and profit sharing. Exclude compensation costs for contingent (temporary, seasonal or contract) employees. Operating ExpenseOperating expense is the total operating expenses including cost of goods sold and general and administrative expenses, incurred by the reporting unit for the reporting period, as stated on your Income Statement. Purpose Regular Employees Compensation Expense Percent is the amount of salaries and wages paid to all full time and part time regular employees as a percentage of operating expenses. This metric monitors how much of an organization’s operating expenses are devoted to regular employee compensation. Over time, this metric can show if the organization is obtaining a higher or lower return on dollars invested in people. ASSOCIATED FINANCIAL METRICS: Compensation Revenue Percent, Compensation Expense Percent, Compensation Earning Percent, Compensation Percent, Variable Compensation Percent, Employee Cost Factor, Total Employee Cost Factor, Total Compensation Expense Percent, and Total Compensation Revenue Percent. Total Labor Cost Revenue Percent (Total Compensation Cost + Benefit Costs EPTNW)Revenue27.8%Definitions Total Compensation Cost Total compensation costs incurred by the reporting unit during the reporting period for all employees on and off payroll, including regular pay, overtime pay, pay premiums, commissions, performance related bonuses and profit sharing. Benefit Costs – Excluding Payments for Time Not Worked Total employer paid costs incurred by the reporting unit during the reporting period for legally required payments, retirement and savings plan payments, life insurance and death benefit payments, medical and medically related benefit payments, miscellaneous benefit payments. Revenue Revenue is the total sales and service earnings (pre-tax) for the reporting unit for the reporting period. This number is available on your organization Income statement. Purpose Total Labor Cost Revenue Percent is the total compensation and benefits paid to all employees as a percentage of revenue. This metric monitors how much of an organization’s revenue is devoted to employee compensation and benefits. Over time, this metric can show if the organization is obtaining a higher or lower return on dollars invested in people. ASSOCIATED FINANCIAL METRICS: Compensation Revenue Percent, Compensation Expense Percent, Compensation Earning Percent, Compensation Percent, Variable Compensation Percent, Employee Cost Factor, Total Employee Cost Factor, Total Compensation Expense Percent, Total Compensation Revenue Percent, Earnings Factor, Human Capital ROI, Human Capital Value Added, Human Economic Value Added, Benefit Factor, and Healthcare Factor. Workforce Total Compensation Revenue Percent (Workforce On Payroll Compensation Cost + Benefit Costs EPTNW) Revenue = 27.0%
Definitions Workforce On Payroll Compensation Cost Total compensation costs incurred by the reporting unit during the reporting period for regular full-time, part-time and contingent (temporary, seasonal or contract) on payroll employees, including regular pay, overtime pay, pay premiums, commissions, performance related bonuses and profit sharing. Exclude compensation costs for contingent (temporary, seasonal or contract) off payroll employees. Benefit Costs – Excluding Payments for Time Not Worked Total employer paid costs incurred by the reporting unit during the reporting period for legally required payments, retirement and savings plan payments, life insurance and death benefit payments, medical and medically related benefit payments, miscellaneous benefit payments. Revenue Revenue is the total sales and service earnings (pre-tax) for the reporting unit for the reporting period. This number is available on your organization抯 Income statement. Purpose Workforce Employees Total Compensation Revenue Percent is the total compensation and benefits paid to all employees on payroll as a percentage of revenue. This metric monitors how much of an organization’s revenue is devoted to workforce employee compensation and benefits. Over time, this metric can show if the organization is obtaining a higher or lower return on dollars invested in people. ASSOCIATED FINANCIAL METRICS: Compensation Revenue Percent, Compensation Expense Percent, Compensation Earning Percent, Compensation Percent, Variable Compensation Percent, Employee Cost Factor, Total Employee Cost Factor, Total Compensation Expense Percent, Total Compensation Revenue Percent, Earnings Factor, Human Capital ROI, Human Capital Value Added, Human Economic Value Added, Benefit Factor, and Healthcare Factor. Regular Employees Total Compensation Revenue Percent (Regular Compensation Cost + Benefits Cost EPTNW Revenue = 21.0%
Definitions Regular Compensation Cost Total compensation costs incurred by the reporting unit during the reporting period for regular full-time and part-time employees, including regular pay, overtime pay, pay premiums, commissions, performance related bonuses and profit sharing. Exclude compensation costs for contingent (temporary, seasonal or contract) employees. Revenue Revenue is the total sales and service earnings (pre-tax) for the reporting unit for the reporting period. This number is available on your organization抯 Income statement. Purpose Regular Employees Total Compensation Revenue Percent is the total compensation and benefits paid to all regular employees as a percentage of revenue. This metric monitors how much of an organization’s revenue is devoted to regular employee compensation and benefits. Over time, this metric can show if the organization is obtaining a higher or lower return on dollars invested in people. ASSOCIATED FINANCIAL METRICS: Compensation Revenue Percent, Compensation Expense Percent, Compensation Earning Percent, Compensation Percent, Variable Compensation Percent, Employee Cost Factor, Total Employee Cost Factor, Total Compensation Expense Percent, Total Compensation Revenue Percent, Earnings Factor, Human Capital ROI, Human Capital Value Added, Human Economic Value Added, Benefit Factor, and Healthcare Factor.