Definition This KPI measures the ratio of Full-Time Equivalents (FTEs) involved in the process group of “process payroll” to the revenue generated by the organization. It indicates the efficiency of the HR department in managing payroll processes relative to the company’s revenue.
Calculation To calculate this KPI, divide the total number of FTEs dedicated to the “process payroll – HR” sub function by the revenue generated by the organization, and multiply the result by $1 billion.
Unit of Measurement FTEs
Function Process payroll – HR
Method of Estimation The number of FTEs can be obtained by counting the actual employees involved in the “process payroll – HR” sub function. Revenue data can be derived from financial statements or sources such as annual reports.
Timeframe This KPI is typically measured on an annual basis.

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