Salary Roll-Up Metric

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A Salary Rollup Metric summarizes employee salary expense by company, department or division. It is usually reported separately for employees and contractors and is usually further divided into direct salary, employee bonus and other forms of compensation that contribute to total earnings.

Most companies find that the cost of human capital is the largest of their expenses. Because of this, management needs to have access and visibility of employee earnings and compensation commitments. Salary Rollup Metrics form the basis of many other calculations, including the cost to manage employees, performance to plan, product line profitability and many more.

Salary Rollup Metrics are often determined running separate reports for both full-time employees and contractor positions. By visualizing the distinctive costs of both types of employees, executive management can make sense of the costs of both the permanent and contingent workforce.

The Salary Roll-up metric usually includes more than just salary statistics. One can opt to include bonuses, paid vacation, sick leave, and stock options. In order to understand the full level of compensation of employees, these options must be accounted for. An org chart makes analyzing workforce costs a piece of cake, especially when calculating statistics by manager or department, or alternately by function or location. With the click of a mouse, one can display the data they want, and create reports to make effective decisions.


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