Employee work cost isn't represented solely by his salary, allowances, reimbursement for meal, transport to work or benefits, but also by the cost of those values, which result from other processes in HR field. In order to gain required information, the system can be connected to an ERP system or payroll system.
Work cost is usually monthly planned. The realization cost data comes from payroll and other systems. The next step is, naturally, the comparison and finding the discrepancy between plan and realization, which shows the real condition of work cost. It may have impact to some specific business actions.
Cost of a job
Jobs have a different value and that is why employees assigned to jobs with higher value, represent greater cost for the company.
Employee cost
Salaries, allowances, contributions, reimbursement for lunch, reimbursement for transport to work, sick leave, holidays, business travel, redundancy, benefits, bonuses...
Recruitment cost
Cost, that occurs in process of searching for personnel in various bases, advertising cost and cost of testing candidates, interviewing, cost of "Head Hunting" agencies and other cost.
Personnel turnover, Employee turnover
Employee turnover results in additional costs that need to be considered.
Because the rate of employee turnover doesn't indicate the level of company's cost, we must calculate them. Cost of employee turnover can be calculated with the formula of Dr. M. Novak:
EF = economic effect of an employee turnover
i = income
t = lost time because of employee turnover (this value can be calculated, if we compare the effect of an employee that left the company and needed time for a
new employee to reach the same effect)
ta = lost time until the job is filled
tb = lost time that is needed for recruitment, training and resignation of an employee
a = average number of employees during the year
r = annual net fund of an employee working hours
z = number of employee turnover during a year
Non-occupied jobs
Jobs with none assigned employees represent additional cost. Someone else has to perform that work, which means that he/she can probably not fully perform his own work.
Training cost
This value includes training cost from Learning Management or cost of "work and study".