| Definition | This KPI measures the average cost of each full-time equivalent employee for a specific business entity. |
|---|---|
| Calculation | Total personnel cost / Total number of full-time equivalent employees |
| Unit of Measurement | US dollars |
| Function | Reward and retain employees – HR |
| Method of Estimation | The personnel cost is calculated by summing up the salaries, benefits, and other costs associated with employees. The full-time equivalent employees are calculated by dividing the total number of hours worked by full-time employees by the standard number of hours worked per full-time employee. |
| Timeframe | This KPI is typically calculated on a monthly or annual basis. |
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