← HR Metrics·Compensation & Benefits
Cost per Employee
Total employment cost per employee
How it’s computed
total_cost / headcount
What the evidence shows
Evidence (effect sizes, priors, validity) is syncing from Principia.
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.
“The first and most traditional measure of recruiting cost is cost-per-hire, as I explain next. Cost-per-hireCost-per-hire measures the economic cost of the effort taken to fill an open job. Given that filling an open job is in no way, shape, or form a uniform task, you can…”
— People Analytics For Dummiesmatch 55%
“Labour Cost Expense Percent Labour Cost / Operating Cost The total labour costs as a percentage of total expenses. Labour cost can be a significant operating expense, in an organization that relies on human capital to generate value. Review this with Revenue per FTE to ensure…”
— Predictive HR Analyticsmatch 53%
“We do so in Exhibit 3-2 . Exhibit 3-2. Elements of the Total Compensation Framework (continuing the discussion from Chapter 1 ) [image "Image" file=Image00020.jpg] In the discussions about the projections of total compensation forecasting, expenditures normally paid via expense…”
— Compensation Benefit Designmatch 51%
Resources: People Analytics For Dummies · Predictive HR Analytics · Compensation Benefit Design