Analytics · HR glossary

Workforce Cost Analysis

Workforce cost analysis examines the costs associated with employing or engaging people. It may include salary, benefits, employer contributions, contractors, recruitment, training and other defined costs.

Example

Finance compares planned and actual workforce spending, separating changes caused by headcount, pay rates, overtime and contractor use.

What to keep in mind

State which costs and time periods are included. Cost per employee can change because the workforce mix changes, so a lower figure does not automatically indicate greater efficiency.

Further reading

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