Definition

The Cost Labour KPI refers to the total amount of money spent in a set period in order to employ staff.

Characteristics

Relates directly to the number provided in the Headcount KPI

IncludeDon’t include
  • Benefits, taxes, social security costs
  • can be reduced by grants or subsidies received
  • External contractors

Calculation

∑ of salaries/wages (gross + incidental costs)
= Cost Labour
AliasPayroll Costs/Salaries/Wages
AbbreviationCL
UnitCurrency (Euro/Dollar/YEN/…)

Example

A company has two employees. The employees each receive 1.500 € net per month. The company has to pay 2.500 € for each employee (gross salary + incidental labour costs). Cost Labour is therefore calculated as follows:

2 × 2.500 €
= 5.000 €