Definition This KPI measures the cost spent on personnel for each employee within the business entity.
Calculation Total personnel cost / Number of employees within the business entity
Unit of Measurement US Dollars
Function Develop and Manage Human Capital – HR
Method of Estimation The personnel cost is calculated by summing up the salaries, wages, benefits, and other related expenses of all employees. The number of employees is obtained from the HR records or payroll system.
Timeframe Monthly or annually, depending on the reporting requirements.

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