Salary Rollup Metric - Salary Expense by Company, Division, Dept.

Description

Salary Rollup Metric summarises employee salary expense by company, division and department. Salary rollup is usually reported separately for employees and long-term contractors and is further broken out into direct salary, bonuses and other compensation line items that compose employee total compensation.

Business Case

The cost of human capital is normally the largest single expense item for most companies, and it is critical that executive management and line managers have visibility into their employee compensation budgets and current commitments.  Salary Rollup Metric forms the basis of many other reports and calculations, such as Cost to Manage, Performance to Budget, Product Line Profitability and many others.

Required Data

Annual Salary  Example: $56,000; £47,000

Samples

Implementation Considerations

There are many considerations that can be taken into account when defining the salary rollup calculation. In fact, multiple salary rollup metrics may be desirable. Some metrics are listed below. Your HumanConcepts Professional Services Consultant can work with you to define calculations that take into account the available data and your business needs.

Employee Type

Example: Full-time, Part-time, Contractor
Salary rollup is normally reported separately for full-time employees and contractors. This break-down makes it easier for line managers and executive management to gauge the level of reliance on contractors and total cost to the business.

Total Employee Compensation

Example: Salary, Bonus, Stock Options, Vacation
Employee salary is just one part of the compensation package that each employee receives.  Total employee compensation is a more meaningful measure of employee cost, as it includes other cash benefits, such as cash bonuses, benefits, tuition reimbursement, etc. Some companies also choose to include non-cash benefits, such as stock options and vacation days, in their employee total compensation calculation.