← HR Metrics·Compensation & Benefits
Salary Budget Variance
Actual vs budgeted salary expenditure
How it’s computed
(actual - budget) / budget
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.
“Turnover lowers costs because employees who terminate usually are compensated at higher levels than those who replace them. In fact, because of turnover in some companies, salary programs add zero dollars to total payroll. However, the impact of turnover is generally more…”
— Compensation Benefit Designmatch 50%
“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 49%
“Using the same pay policy, the company would like its pay levels to be 2.0% above the market at the middle of the plan year. For our example, then, we have completed Table 11.6 to get the final market-based salary increase budget of 4.0%. If it turns out that your situation is…”
— Statistics for Compensationmatch 48%
Resources: Compensation Benefit Design · Statistics for Compensation