← HR Metrics·Compensation & Benefits
Compensation % of Revenue
Annual compensation spend as a share of (implied) revenue.
How it’s computed
annual_comp_spend / implied_revenue * 100
What the evidence shows
Evidence (effect sizes, priors, validity) is syncing from Principia.
What this metric can show you
Compensation % of Revenue can tell roughly 22 pre-built stories — each a designed scene the data either confirms or it doesn’t. Bring your numbers and the Story Finder runs every one of these shapes against them.
specific to compensation & benefits
A real gradient — now ask if it's pointed at value
compensation · T1
Below the market, across the board
compensation · T1
One group sits apart on a decision that should be neutral
fairness-equity · T1
Pay is drifting from plan
compensation · T1
universal shapes — any single metric can take these
A few large values are doing the talking
any focus · T1
A one-time event, not a trend
any focus · T1
It doesn't track — the premise is false
any focus · T1
It's concentrated — one group stands apart
any focus · T1
Scenes are pre-built; your data is the toggle. Browse the full deck or watch one play end-to-end in The Quiet Exodus.
Run it on your data
This metric is computed in the People Analytics Toolbox on your own numbers. See pricing — posted, no quotes.
sources: toolbox:metrics-catalog
What the literature says
The measurement literature behind this signal — sourced, so you can defend it.
“It reflects a “cost to hire and retain” logic for setting target pay levels.[C5]Cost of salesFor sales compensation purposes, a relative measure of internal costs. It reflects an “ability to pay” logic for setting target pay levels. The cost of sales, expressed as a percent, is…”
— Worldatwork Handbook Compensationmatch 57%
“Those accepting this position maintain that women performing jobs of comparable worth to those performed by men should be paid the same as men, excepting allowable differences (for example, seniority plans, merit plans, productionbased pay plans or different locations).[C1, C2,…”
— Worldatwork Handbook Compensationmatch 56%
“How do we distribute compensation across the organization?Compensation spend distribution analysis takes the total compensation spent on a defined set of employees (i.e., a group) and calculates the percent of the total spend that is allocated to each group. Groups can include…”
— The Compensation Handbook (6th ed.)match 54%
Resources: Worldatwork Handbook Compensation · The Compensation Handbook (6th ed.)