← HR Metrics·Compensation & Benefits
Total Compensation Cost
Total payroll cost including benefits and bonuses
How it’s computed
SUM(total_compensation)
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.
“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 60%
“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 58%
“It is also paid to employees to do the assigned work by applying the required skills, knowledge, and abilities using normal effort and demonstrating necessary work behaviors. Basic pay is usually the largest component of the total pay package. In other words, basic pay is the…”
— Compensation Benefit Designmatch 57%
Resources: Compensation Benefit Design · Worldatwork Handbook Compensation