← HR Metrics·Compensation & Benefits
Overtime Cost Ratio
Overtime pay as percentage of total payroll
How it’s computed
SUM(overtime_pay) / SUM(total_pay)
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 OECD develops policy recommendations and guidelines, some of which are binding (e.g., anti-bribery convention) and assists governments ensure responsiveness by monitoring economic changes in member countries.[C15]Organizational cultureSee corporate culture.[C2, C11, C17, T6,…”
— Worldatwork Handbook Compensationmatch 57%
“When retroactive wage increases are made, retroactive overtime compensation is due at the time the increase appears in the employee’s paycheck.Overtime CalculationThe FLSA does not permit averaging of hours over two or more weeks, even if the average of the two workweeks is…”
— Worldatwork Handbook Compensationmatch 56%
“The regular rate is computed by dividing total earnings (except statutory exclusions) by the total number of hours for which earnings were paid. If the piece-rate earnings constitute straight-time pay for all hours worked, only additional half-time need be paid for work over…”
— Worldatwork Handbook Compensationmatch 56%
Resources: Worldatwork Handbook Compensation