Cost Labour

Definition

The cost labour KPI refers to the total amount of money spent by employers in order to employ workers.

Characteristics

-Includes benefits, taxes, social security costs
-Includes direct and indirect labour costs
-Includes fix and variable costs, depending on whether   labour costs change according to your business
-Needs to relate directly to the number provided in the         Headcount KPI
-Can be reduced by grants or subsidies received

Example

For an employee that receives a salary of 1000 € the employer has to spend more in taxes, insurance fees and other costs so the cost of labour might be 1200 €. 

Negations / Exclusions

– External contractors that are not involved in your    business/product

Payroll costs, Salaries, Wages

CL

Currency
(Euro / Dollar / YEN…)

Calculation

Calculate for each employee the total costs (gross) and add them up.

Cost Total

Cost Labour

Net Cash Burn

Cash on Hand

Head-count

Individual KPIs