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📊 Headcount Cost
Jessie Walsh avatar
Written by Jessie Walsh
Updated over 4 months ago

A metric within the Rewards story chapter.

Definition

Headcount Cost shows the total spend of the organization on employees. The total cost is split into different costs due to (1) current salaries, (2) promotions, and (3) new hires. (4) Turnover Cost Deduction is the amount of money deducted due to turnover for a specific period.

Insight to

Since labor cost represents one of the highest operating expenses for any organization, this metric can be compared to the total operating cost to provide an insight into how much of your total operating cost is being allocated to labor cost. To interpret results dismantling what your rate means will heavily depend on your business values, practices and goal

How we calculate this

Total Cost = sum of monthly current employees’ salaries, promotions of current employees, and new hires’ salaries Current Salaries Cost = sum of monthly current employees’ salaries Promotions Cost = sum of salary increases for current employees New Hires Cost = sum of new hires’ salaries Turnover Cost Deduction = sum of salaries for leaving employees

Source data

Extracted from HRIS:

  • Compensation history effective start date

  • Compensation history effective end date

  • Compensation history effective amount

  • Compensation history effective currency

  • Compensation history effective period

  • Employees employment start date

  • Employees employment end date

  • Variable payment effective date

  • Variable payment effective amount

  • Variable payment effective currency

🚑 Problem with source data? See Data Health 101 for remedies.

Available filters

  • Age

  • Department

  • Employment Type

  • Ethnicity

  • Gender

  • Generation

  • Location

  • Manager

  • Role

  • Team

  • Tenure


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