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