Saratoga 05-06 Metric List

Saratoga
Metric
List
Organization and Operations
Metric Name
Formula
Description
*Revenue Factor
Revenue / Regular FTE
Revenue per FTE.
Workforce Employees
Revenue Factor
Revenue / Workforce On Payroll FTE
Revenue per FTE (including all regular employees and

contingents on payroll)
Total Revenue Factor
Revenue / Total FTE
Revenue per FTE (including all contingent employees)
*New Product or Service New Products & Services Revenue/

Revenue Per Employee Regular FTE
Revenue generated per FTE from products and services

developed within the past 3 years.
*Expense Factor
Operating Expense / Regular FTE
Operating expenses per FTE.
Workforce Employees
Expense Factor
Operating Expense / Workforce On

Payroll FTE
Operating expenses per FTE (including all regular

employees and contingents on payroll)
Total Expense Factor
Operating Expense / Total FTE
Operating expenses per FTE (including all contingent

employees)
*Income Factor
(Revenue - Operating Expense) / Regular

FTE
The pre-tax profit per FTE.
Workforce Employees
Income Factor
(Revenue - Operating Expense) /

Workforce On Payroll FTE
Pre-tax profit per FTE (including all regular employees

and contingents on payroll)
Total Income Factor
(Revenue - Operating Expense) / Total

FTE
Pre-tax profit per FTE (including all contingent

employees)
Human Capital Value

Added
(Revenue - (Operating Expense - (Regular The profit an organization would generate if it didnt have
Compensation Cost + Benefit Costs
to pay salary and benefits to its employees.
EPTNW))) / Regular FTE
Workforce Employees
Human Capital Value
Added
(Revenue - (Operating Expense (Workforce On Payroll Compensation

Cost + Benefit Costs EPTNW))) /
Estimates profit an organization would generate if it

didnt have to pay salary and benefits to employees
(including all regular employees and contingents on
payroll)
Total Human Capital

Value Added
(Revenue - (Operating Expense - (Total

EPTNW))) / Total FTE
Estimates profit an organization would generate if it

didnt have to pay salary and benefits to employees
(including all contingent employees)
Note:
(1) highlighted metrics are new Saratoga metrics

(2) *represent global metrics
Saratoga
pwc

Metric Name
Formula
Description
*Human Capital ROI
(Revenue - (Operating Expense - (Regular The pre-tax profit for each dollar invested in employee
pay and benefits.
EPTNW))) / (Regular Compensation Cost
+ Benefit Costs EPTNW)
Workforce Employees
Human Capital ROI
(Revenue - (Operating Expense (Workforce On Payroll Compensation

Cost + Benefit Costs EPTNW))) /
(Workforce On Payroll Compensation
Cost + Benefit Costs EPTNW)
Total Human Capital ROI (Revenue - (Operating Expense - (Total

EPTNW))) / (Total Compensation Cost +
Benefit Costs EPTNW)
Pre-tax profit for each dollar invested in employee

pay and benefits (including all regular employees and
Pre-tax profit for each dollar invested in employee pay

and benefits (including all contingent employees)
Manager Ratio
Regular Headcount / Manager Headcount Number of employees each Manager supports (AKA
Manager span of control)
Workforce Employees
Manager Ratio
Workforce On Payroll Headcount /

Manager Headcount
Number of employees (including all regular employees

and contingents on payroll) each Manager supports (AKA
Manager span of control)
Total Manager Ratio
Total Headcount / Manager Headcount
Number of employees (including all contingent

employees) each Manager supports (AKA Manager span
of control)
Executive Ratio
Regular Headcount / Executive

Headcount
The number of headcount employees supported by each

Executive (AKA Executive span of control)
Workforce Employees
Executive Ratio

Executive Headcount
The number of employees (including all regular

employees and contingents on payroll) supported by
each Executive AKA span of control.
Total Executive Ratio
Total Headcount / Executive Headcount
The number of employees (including all contingent

employees) supported by each Executive (AKA Executive
span of control)
*Management Ratio
Regular Headcount / Management

Headcount
The number of employees each Manager and Executive

supports AKA span of control.
Workforce Employees
Management Ratio

Management Headcount
Number of employees (including all regular employees

and contingents on payroll) each Manager and Executive
supports (AKA span of control)
Total Management Ratio
Total Headcount / Management

Headcount
Number of employees (including all contingent

employees) each Manager and Executive supports (AKA
span of control)
*Executive Stability
Ratio
Executive Headcount with Greater than 3

Years of Service / Executive Headcount
The percent of Executives with 3 or more years of

service.
Average Tenure in
Current Management
Position
Total Tenure in Current Management

Position / Management Headcount
The average amount of time leadership (Managers and

Executives) has been in their current positions.
Bench Strength
Management Headcount Ready for

Promotion / Management Headcount
The percent of Management that has been identified as

ready for promotion by the organization.
Succession Planning
Ratio
Number of Succession Planning

Candidates / Number of Key Roles
Percent of key roles that have succession planning

candidates associated with them.
Note:

Saratoga
pwc

Metric Name
Formula
Description
One to Two Candidate

Succession Planning
Depth
Number of Key Roles with 1 or 2 Unique

Successors / Number of Key Roles
Percent of key roles that have a succession pool of one

to two unique candidates.
Three or More
Candidate Succession
Planning Depth
Number of Key Roles with 3 or More

Unique Successors / Number of Key
Roles
Percent of key roles that have a succession pool of 3 or

more unique candidates.
Succession Plan
Promotion Rate
Number of Succession Planning

Candidates Promoted / Number of
Succession Planning Candidates
Percent of succession plan candidates promoted during

the survey period.
*Average Tenure
Total Tenure / Regular Headcount
The average length of service for all active employees.
*Promotion Rate
Total Promotions / Regular Headcount
Percent of headcount that was promoted during the

survey period.
Average Time to
Promotion
Number of Months to Promotion / Total

Promotions
The average number of months required for an employee

to be promoted.
Average Time to First

Promotion
Number of Months to First Promotion /

Number of First Time Promotees
The average number of months required for an employee

to be promoted for the first time.
*Career Path Ratio
Total Promotions / (Total Promotions +

Total Transfers)
The percent of employee movement (transfers and

promotions) within an organization that is upward
(promotions)
Executive Career Path

Ratio
Executive Promotions / (Executive

Promotions + Executive Transfers)
The percent of Executive employee movement (transfers

and promotions) within the organization that is upward
(promotions)
Manager Career Path

Ratio
Manager Promotions / (Manager

Promotions + Manager Transfers)
The percent of Manager employee movement (transfers

(promotions)
Professional Career
Path Ratio
Professional Promotions / (Professional

Promotions + Professional Transfers)
Percent of Professional employee movement (transfers

(promotions)
Sales Career Path Ratio
Sales Promotions / (Sales Promotions +

Sales Transfers)
Percent of Sales employee movement (transfers and

promotions) within the organization that is upward
(promotions)
Office & Clerical Career

Path Ratio
Office & Clerical Promotions / (Office &

Clerical Promotions + Office & Clerical
Transfers)
Percent of Office & Clerical employee movement

(transfers and promotions) within the organization that is
upward (promotions)
Operative Career Path

Ratio
Operative Promotions / (Operative

Promotions + Operative Transfers)
Percent of Operative employee movement (transfers

(promotions)
First Year Transfer Rate
Number of First Year Transfers / Regular

Headcount with 0 to 1 Year of Service
The percent of employees transferred to a new position

during their first year of service.
Organization Layers
Number of Levels
Highest number of distinct reporting layers within an

organization.
Executive FTE Percent
Executive FTE / Regular FTE
The percent of full-time equivalent (FTE) employees

classified as Executive.
Manager FTE Percent
Manager FTE / Regular FTE
Percent of full-time equivalent (FTE) employees classified

as Manager.
Note:

Saratoga
pwc

Metric Name
Formula
Description
Professional FTE
Percent
Professional FTE / Regular FTE

as Professional.
Sales FTE Percent
Sales FTE / Regular FTE

as Sales.
Office & Clerical FTE

Percent
Office & Clerical FTE / Regular FTE

as Office & Clerical.
Operative FTE Percent
Operative FTE / Regular FTE

as Operative.
Finance FTE Percent
Finance FTE / Regular FTE

classified as Finance.
Information Technology
FTE Percent
Information Technology FTE / Regular

FTE

classified as Information Technology.
Research &
Development FTE
Percent
Research & Development FTE / Regular

FTE
Percent of full-time equivalent (FTE) employees

classified as Research & Development.
Procurement FTE
Percent
Procurement FTE / Regular FTE
Percent of full-time equivalent (FTE) employees

classified as Procurement.
Regular Headcount with

1 to 3 Years of Service
(Regular Headcount with 1 to 2 Years of

Service + Regular Headcount with 2 to 3
Years of Service) / Regular Headcount
Percent of non contingent workforce with one to three

years of service at the end of the survey period.

Regular Headcount with 3 to 5 Years of

Service / Regular Headcount
Percent of non contingent workforce with three to five


Regular Headcount with 5 to 10 Years of

Percent of non contingent workforce that had five to ten


10+ Years of Service
Regular Headcount with 10 + Years of

Percent of non contingent workforce with more than ten

Contingent On Payroll
Headcount Percent
Contingent On Payroll Headcount / Total

Headcount
The percent of an organizations workforce that is

contingent on payroll (e.g., contractors)
Contingent Off Payroll

Headcount Percent
Contingent Off Payroll Headcount / Total

Headcount
The percent of an organizations workforce that is

contingent off payroll (e.g., those who come in through a
third party agency)
Workforce with
Advanced Degrees
Regular Headcount with Advanced

Degrees / Regular Headcount
Percent of employees that have advanced degrees

(Masters or above)
*Rookie Ratio
(Regular Headcount with 0 to 1 Year of

Service + Regular Headcount with 1 to 2
Years of Service) / Regular Headcount
Percent of employees with less than two years of service.
Percent of Employees
Employees Eligible for Retirement in Next
Eligible for Retirement In 5 Years / Regular Headcount
Next Five Years
Percent of employees who will be eligible for retirement

in the next five years
Call Center Manager

Span of Control
Call Center Headcount / Call Center

Manager Headcount
New metric for 2006. Number of Call Center employees

each Call Center Manager supports (AKA Manager span
of control)
Call Center Cost Per

Hire
(Total Call Center Hiring Cost * 1.1 Factor) New metric for 2006. Average amount spent on hiring
/ Total Call Center Hires
costs for each Call Center employee hired
Note:

Saratoga
pwc

Metric Name
Formula
Description
Call Center Time To Fill
Total Call Center Days to Fill / Total Call

Center Hires
New metric for 2006. Average number of calendar days

from the date a job requisition is approved to the date an
offer is accepted by a Call Center hire.
Call Center Voluntary

Separation Rate
Total Call Center Voluntary Separations /

Call Center Headcount
New metric for 2006. Percent of Call Center employees

who voluntarily left the organization during the survey
period.
Call Center New Hire

Voluntary Separation
Rate
Total Call Center Voluntary Separations

with 0 to 3 Months of Service / Total Call
Center Hires
New metric for 2006. Percent of total Call Center hires

that voluntarily left the organization within their first 3
months of service during the survey period.
Percent of Total Call

Center Voluntary
Turnover Occurring in
First Year of Service
Total Call Center Voluntary Separations

with 0 to 1 Year of Service / Total Call
Center Voluntary Separations
New metric for 2006. Percent of total Call Center

voluntary separations that occurred during the first year
of service.
Call Center Poor Quality

Hire Rate
Total Call Center Separations with 0 to

3 Months of Service / Total Call Center
Hires
New metric for 2006. Percent of Call Center hires that

voluntarily or involuntarily left the organization during the
first 3 months of employment.
Nurse Per Diem

Costs as a Percent of
Operating Expenses
Nurse Per Diem Costs / Operating

Expense
New metric for 2006. Percent of operating expenses

devoted to paying agencies or independent contractors
for temporary nursing work assignments that add to or
substitute for full time nursing staff.
Nurse Overtime Pay

Percent
Nurse Overtime Pay / Nurse

Compensation Cost
New metric for 2006. Percent of Nurse compensation

costs devoted to overtime pay.
Nurse Paid Time Off

Rate
Nurse Paid Time Off Days / Nurse

Headcount
New metric for 2006. Percent of workdays Nurses used

for paid time off.
Nurse Absence Days
Nurse Absence Days / FTE Workdays
New metric for 2006. Percent of Nurse FTE workdays

missed due to illness.
Nurse Cost Per Hire
(Total Nurse Hiring Cost * 1.1 Factor) /

Total Nurse Hires
New metric for 2006. Average amount spent on hiring

costs for each Nurse hired
Nurse Agency Cost Per

Hire
Total Nurse Agency Hiring Cost / Total

Nurse Agency Hires
New metric for 2006. Average amount spent on agency

hiring costs for each Nurse hired
Nurse Time To Fill
Total Nurse Days to Fill / Total Nurse

Hires
New metric for 2006. Average number of calendar days

from the date a job requisition is approved to the date an
offer is accepted by a Nurse hire.
Nurse Voluntary
Separation Rate
Total Nurse Voluntary Separations / Nurse New metric for 2006. Percent of Nurses who voluntarily
Headcount
left the organization during the survey period.
Nurse New Hire

Rate
Total Nurse Voluntary Separations with 0 New metric for 2006. Percent of total Nurse hires that
to 3 Months of Service / Total Nurse Hires voluntarily left the organization within their first 3 months
of service during the survey period.
Percent of Total Nurse

Voluntary Turnover
Occurring in First Year
of Service
Total Nurse Voluntary Separations with

0 to 1 Year of Service / Total Nurse
Voluntary Separations
New metric for 2006. Percent of total Nurse voluntary

separations that occurred during the first year of service.

Voluntary Turnover
Occurring between 1-3
Years of Service

1+ to 3 Years of Service / Total Nurse

separations that occurred between 1-3 years of service.
Note:

Saratoga
pwc

Metric Name
Formula
Description

Voluntary Turnover
Years of Service

New metric for 2006. Percentage of total Nurse voluntary

separations that occurred between 3-5 years of service.

Voluntary Turnover
Years of Service


separations that occurred between the 5-10 years of
service.

Voluntary Turnover
Occurring with 10+
Years of Service

10+ Years of Service / Total Nurse

separations that occurred for employee with 10+ years of
service.
Nurse Poor Quality Hire

Rate
Total Nurse Separations with 0 to 3

Months of Service / Total Nurse Hires
New metric for 2006. Percent of Nurse hires that

voluntarily or involuntarily left the organization during the
first 3 months of employment.
HR Staff and Structure

Metric Name
Formula
Description
*HR FTE Ratio
Regular FTE / Direct HR FTE
Number of FTE employees that each HR FTE employee

supports in the organization
Direct and Indirect HR

FTE Ratio
Regular FTE / (Direct HR FTE + Indirect

HR FTE)
Number of full-time equivalent (FTE) employees

supported by both Direct HR employees (those charged
to the HR budget) and Indirect HR employees (HR
shadow support such as staffing occurring in the
business line)
HR Leadership &
Strategy FTE Ratio
Regular FTE / HR Leadership & Strategy

FTE
New metric for 2006. Number of full-time equivalent

(FTE) employees supported by each HR Leadership &
Strategy FTE
Benefits FTE Ratio
Regular FTE / Benefits FTE

(FTE) employees supported by each HR Benefits FTE
Benefits Strategy and

Program Design FTE
Ratio
Regular FTE / Benefits Strategy and

Program Design FTE

(FTE) employees supported by each Benefits Strategy
and Program Design FTE
Health and Welfare

Plans Administration
FTE Ratio
Regular FTE / Health and Welfare Plans

Administration FTE

(FTE) employees supported by each Health & Welfare
Plans Administration FTE
Defined Benefit Plan

Administration FTE
Ratio
Regular FTE / Defined Benefit Plan

Administration FTE

(FTE) employees supported by each Defined Benefit Plan
Administration FTE
Defined Contribution
Plan Administration FTE
Ratio
Regular FTE / Defined Contribution Plan

Administration FTE

(FTE) employees supported by each Defined Contribution
Plan Administration FTE
Leave Management FTE

Ratio
Regular FTE / Leave Management FTE

(FTE) employees supported by each Leave Management
FTE
Note:

Saratoga
pwc

Metric Name
Formula
Description
Compensation FTE
Ratio
Regular FTE / Compensation FTE

(FTE) employees supported by each Compensation FTE
Executive
Compensation
Administration FTE
Ratio
Regular FTE / Executive Compensation

Administration FTE

(FTE) employees supported by each Executive
Compensation Administration FTE
Executive
Compensation Strategy
and Program Design
FTE Ratio
Regular FTE / Executive Compensation

Strategy and Program Design FTE

(FTE) employees supported by each Executive
Compensation Strategy and Program Design FTE
Non Executive
Compensation
Administration FTE
Ratio
Regular FTE / Non Executive


(FTE) employees supported by each Non-Executive
Non Executive
and Program Design
FTE Ratio
Regular FTE / Non Executive

Compensation Strategy and Program
Design FTE

(FTE) employees supported by each Non-Executive
Compensation Strategy and Program Design FTE
Recruiting & Staffing

FTE Ratio
Regular FTE / Recruiting & Staffing FTE

(FTE) employees supported by each Recruiting and
Staffing FTE
HR Talent Management
FTE Ratio
Regular FTE / HR Talent Management

FTE
New metric for 2006. Number of full-time equivalent (FTE)

employees supported by each HR Talent Management
FTE
Employee & Labor

Relations FTE Ratio
Regular FTE / Employee and Labor

Relations FTE

(FTE) employees supported by each Employee & Labor
Relations FTE
Workforce Mobility
Services FTE Ratio
Regular FTE / Workforce Mobility

Services FTE

(FTE) employees supported by each Workforce Mobility
Services FTE
HRIT FTE Ratio
Regular FTE / HRIT FTE

(FTE) employees supported by each HRIT FTE
Vendor Management
FTE Ratio
Regular FTE / Vendor Management FTE
New metric for 2006. Number of full-time equivalent (FTE)

employees supported by each Vendor Management FTE
Employee Records &

Administration FTE
Ratio
Regular FTE / Employee Records &

Administration FTE

(FTE) employees supported by each Employee Records
& Administration FTE
Communications FTE
Ratio
Regular FTE / Communications FTE

(FTE) employees supported by each Communications
FTE
HR Customer Service
Center FTE Ratio
Regular FTE / HR Customer Service

Center FTE

(FTE) employees supported by each HR Customer
Service Center FTE
Business Partners FTE

Ratio
Regular FTE / Business Partners FTE

(FTE) employees supported by each Business Partners
FTE
Note:

Saratoga
pwc

Metric Name
Formula
Description
HR Generalist FTE Ratio
Regular FTE / HR Generalist FTE

(FTE) employees supported by each HR Generalist FTE
Payroll and Time &

Attendance FTE Ratio
Regular FTE / Payroll and Time &

Attendance FTE

(FTE) employees supported by each Payroll and Time &
Attendance FTE
Training FTE Ratio
Regular FTE / Training FTE

(FTE) employees supported by each Training FTE
*HR Headcount Ratio
Regular Headcount / Direct HR

Headcount
Number of headcount employees supported by each HR

employee who has costs charged to the HR budget

Headcount Ratio
Regular Headcount / (Direct HR

Headcount + Indirect HR Headcount)
Number of headcount employees supported by both

Direct HR employees (those charged to the HR budget)
and Indirect HR employees (HR shadow support such as
staffing occurring in the business line)
HR Management and
Professionals FTE Staff
Percent
(HR Management FTE+HR Professionals

FTE) / Direct HR FTE
New metric for 2006. Percent of HR employees classified

as Management (Manager and above) and Professional
HR Leadership &
Strategy FTE Percent
HR Leadership & Strategy FTE / Direct

HR FTE
New metric for 2006. Percent of HR full-time equivalent

staff who are Director and above HR employees (e.g.,
Senior VP of HR) who DO NOT report directly into an HR
function and management and individual contributors
focusing on HR budgeting and metrics
Benefits FTE Percent
Benefits FTE / Direct HR FTE
Percent of HR full-time equivalent staff dedicated to

designing and administering benefit programs
Percent of Benefits
Function Devoted to
Program Design
Benefits Strategy and Program Design

FTE / Benefits FTE
Percent of the Benefits function dedicated to overall

benefits strategy for the organization and designing plan
provisions and programs
Percent of Benefits
Function Devoted to
Health & Welfare Plans
Administration
Health and Welfare Plans Administration

FTE / Benefits FTE
Percent of the Benefits function dedicated to the

administration of health and welfare programs
Percent of Benefits
Function Devoted to
Administration
Defined Benefit Plan Administration FTE /

Benefits FTE
Percent of the Benefits function dedicated to pension

administration and retiree benefits administration
Percent of Benefits
Function Devoted to
Plan Administration
Defined Contribution Plan Administration

FTE / Benefits FTE
Percent of the Benefits function dedicated to 401(k)

administration
Percent of Benefits
Function Devoted to
Leave Management
Leave Management FTE / Benefits FTE

administration of employee leave
Compensation FTE
Percent
Compensation FTE / Direct HR FTE

compensation strategy, design and administration
Note:

Saratoga
pwc

Metric Name
Formula
Description
Percent of
Compensation Function
Devoted to Executive
and Program Design
Executive Compensation Design FTE /

Compensation FTE

the strategy and design of executive compensation
programs
Percent of
Devoted to Executive
Compensation
Administration
Executive Compensation Administration

FTE / Compensation FTE

administering compensation programs for executives
Percent of
Compensation
Function Devoted
to Non Executive
and Program Design
Non Executive Compensation Design

FTE / Compensation FTE
Percent of HR full-time equivalent staff dedicated to the

strategy and design of non-executive compensation
programs
Percent of
Compensation
Function Devoted
to Non Executive
Compensation
Administration
Non Executive Compensation

Administration FTE / Compensation FTE
Percent of HR full-time equivalent staff dedicated

to administering compensation programs for nonexecutives

FTE Percent
Recruiting & Staffing FTE / Direct HR FTE

recruitment strategy, design and administration
FTE Percent
HR Talent Management FTE / Direct HR

FTE

staff dedicated to workforce strategy and program
design, succession strategy and program design,
performance management design, and organizational
development
Employee & Labor

Relations FTE Percent
Employee & Labor Relations FTE / Direct

HR FTE

policy development, employee advocacy, diversity
programs, disciplinary action administration, and union
grievance management
Workforce Mobility
Services FTE Percent
Workforce Mobility Services FTE / Direct

HR FTE

staff dedicated to employee transfer processing,
relocation services, and administration of outplacement
services, severance plan, expatriate, service award, and
performance management
HRIT FTE Percent
HRIT FTE / Direct HR FTE

staff dedicated to strategy, design and maintenance of
the HRIT function
Vendor Management
FTE Percent
Vendor Management FTE / Direct HR FTE Percent of HR full-time equivalent staff dedicated to
managing external HR vendors
Employee Records &

Administration FTE
Percent
Employee Records & Administration FTE

/ Direct HR FTE
Note:

staff dedicated to employee records administration,
transaction processing and reporting, employee records,
and knowledge base management

Saratoga
pwc

Metric Name
Formula
Description
Communications FTE
Percent
Communications FTE / Direct HR FTE

staff dedicated to employee related communications
including employee reward changes, executive
communications, and merger or divestiture related
communications
HR Customer Service
Center FTE Percent
HR Customer Service Center FTE / Direct

HR FTE

staff dedicated to tier 1 call center support for benefits,
compensation, employee relations, and administration
(e.g., address updates)
Business Partners FTE

Percent
Business Partners FTE / Direct HR FTE
Percent of HR Director and above full- time equivalent

staff dedicated to working directly with individual
business units to help develop an HR strategy that meets
the business units needs
HR Generalist FTE
Percent
HR Generalist FTE / Direct HR FTE

staff whose primary responsibility is a customer facing
role that supports a set of employees
Direct HR Headcount
Percent
Direct HR Headcount / (Direct HR

Percent of total HR Headcount (direct and indirect) that

reports and has costs charged directly into HR
Indirect HR Headcount
Percent
Indirect HR Headcount / (Direct HR

Percent of total HR Headcount (direct and indirect) that

does not report or have costs charged directly into HR
(e.g., shadow spending occurring in the line)
HR Revenue Percent
Direct HR Costs / Revenue
Direct HR costs as a percent of revenue

Revenue Percent
(Direct HR Costs + Indirect HR Costs) /

Revenue
Direct (those charged to the HR budget) and Indirect HR

costs (HR shadow support such as staffing occurring in
the business line) as a percent of revenue
*HR Expense Percent
Direct HR Costs / Operating Expense
Percent of total operating expenses devoted to Direct HR

costs

Expense Percent

Operating Expenses
Percent of operating expenses devoted to HR expenses

charged directly to the HR budget as well as indirectly
(HR shadow spending occurring in the business line such
as staffing)
*HR Spend per FTE
Direct HR Costs / Regular FTE
Amount directly invested in the HR department for each

full-time equivalent (FTE)
*HR Spend per

Employee
Direct HR Costs / Regular Headcount
Amount directly invested in the HR department for each

headcount employee
Total HR Spend per

Employee

Regular Headcount
Amount charged directly to the HR budget and indirectly

invested (HR shadow spending occurring in the business
line such as staffing) in HR activities for each employee
Indirect HR Costs Per

Employee
Indirect HR Costs/ Regular Headcount
New metric for 2006. Amount invested per employee in

HR related spending that is not charged directly to the
HR budget (e.g., shadow spending occurring in the line)
HR Leadership &
Strategy Function Costs
Per Employee
HR Leadership & Strategy Function Costs New metric for 2006. Amount spent on HR Leadership
/ Regular Headcount
& Strategy salaries and benefits, outsourcing costs,
consulting and contractor expenses, technology and
systems expenses, and other miscellaneous costs
Note:

Saratoga
10
pwc

Metric Name
Formula
Description
Benefits Function Costs

Per Employee
Benefits Function Costs / Regular

Headcount
New metric for 2006. Amount spent on Benefits

salaries and benefits, outsourcing costs, consulting and
contractor expenses, technology and systems expenses,
and miscellaneous costs
Benefits Strategy
and Program Design
Function Costs Per
Employee

Function Costs / Regular Headcount
New metric for 2006. Amount spent on Benefits Strategy

and Program Design salaries and benefits, outsourcing
costs, consulting and contractor expenses, technology
and systems expenses, and miscellaneous costs

Administration Function
Costs Per Employee
Health & Welfare Plans Administration

New metric for 2006. Amount spent on Health & Welfare

Plans Administration salaries and benefits, outsourcing

Costs Per Employee
Defined Benefit Plan Administration

New metric for 2006. Amount spent on Defined Benefit

Plan Administration salaries and benefits, outsourcing
Plan Administration
Function Costs Per
Employee

New metric for 2006. Amount spent on Defined

Contribution Plan Administration salaries and benefits,
outsourcing costs, consulting and contractor expenses,
technology and systems expenses, and miscellaneous
costs
Leave Management
Function Costs Per
Employee
Leave Management Function Costs /

Regular Headcount
New metric for 2006. Amount spent on Leave

Management salaries and benefits, outsourcing costs,
systems expenses, and miscellaneous costs
Costs Per Employee
Compensation Function Costs / Regular

Headcount
New metric for 2006. Amount spent on Compensation

Executive
Compensation
Costs Per Employee

New metric for 2006. Amount spent on Executive

Compensation Administration salaries and benefits,
costs
Executive
and Program Design
Function Costs Per
Employee
Executive Compensation Strategy and

New metric for 2006. Amount spent on Executive
Program Design Function Costs / Regular Compensation Strategy and Program Design salaries and
Headcount
benefits, outsourcing costs, consulting and contractor
expenses, technology and systems expenses, and
miscellaneous costs
Non Executive
Compensation
Costs Per Employee

Administration Function Costs / Regular
Headcount
New metric for 2006. Amount spent on Non-Executive

Compensation Administration salaries and benefits,
costs
Non Executive
and Program Design
Function Costs Per
Employee
Non Executive Compensation Strategy

and Program Design Function Costs /
Regular Headcount
New metric for 2006. Amount spent on Non-Executive

Compensation Strategy and Program Design salaries and
miscellaneous costs
Note:

Saratoga
11
pwc

Metric Name
Formula
Description

Function Costs Per
Employee
Recruiting & Staffing Function Costs /

Regular Headcount
New metric for 2006. Amount spent on Recruiting

and Staffing salaries and benefits, outsourcing costs,
Function Costs Per
Employee
HR Talent Management Function Costs /

Regular Headcount
New metric for 2006. Amount spent on HR Talent

Employee & Labor

Relations Function
Costs Per Employee
Employee & Labor Relations Function

Costs / Regular Headcount
New metric for 2006. Amount spent on Employee &

Labor Relations salaries and benefits, outsourcing costs,
systems expenses, and miscellaneous cost
Workforce Mobility
Services Function Costs
Per Employee
Workforce Mobility Services Function

New metric for 2006. Amount spent on Workforce

Mobility Services salaries and benefits, outsourcing
HRIT Function Costs

Per Employee
HRIT Function Costs / Regular

Headcount
New metric for 2006. Amount spent on HRIT salaries and

miscellaneous costs
Vendor Management
Function Costs Per
Employee
Vendor Management Function Costs /

Regular Headcount
New metric for 2006. Amount spent on Vendor

Employee Records &

Costs Per Employee
Employee Records & Administration

New metric for 2006. Amount spent on Employee

Records & Administration salaries and benefits,
costs
Communications
Function Costs Per
Employee
Communications Function Costs /

Regular Headcount
New metric for 2006. Amount spent on Communications

HR Customer Service
Center Function Costs
Per Employee
HR Customer Service Center Function

New metric for 2006. Amount spent on HR Customer

Service Center salaries and benefits, outsourcing costs,
Business Partners
Function Costs Per
Employee
Business Partners Function Costs /

Regular Headcount
New metric for 2006. Amount spent on Business

Partners salaries and benefits, outsourcing costs,
HR Generalist Function
Costs Per Employee
HR Generalist Function Costs / Regular

Headcount
New metric for 2006. Amount spent on HR Generalist

*Payroll and Time &

Attendance Function
Costs Per Employee
Payroll and Time & Attendance Function

New metric for 2006. Amount spent on Payroll and Time

& Attendance salaries and benefits, outsourcing costs,
systems expenses
Note:

Saratoga
12
pwc

Metric Name
Formula
Description
Payroll Function Costs

Per Employee
Payroll Function Costs / Regular

Headcount
New metric for 2006. Amount spent on Payroll salaries

and benefits, outsourcing costs, consulting and
Time & Attendance

Function Costs Per
Employee
Time & Attendance Function Costs /

Regular Headcount
New metric for 2006. Amount spent on Time &

Attendance salaries and benefits, outsourcing costs,
HR Labor Costs as a
Percent of Direct HR
Costs
Direct HR Labor Costs / Direct HR Costs
Direct HR Labor costs as a percentage of Direct HR

Costs
*HR Labor Cost Factor
Direct HR Labor Costs / Direct HR FTE
Average compensation and benefits paid to each HR

employee
HR Leadership &
Strategy Labor Cost
Factor
HR Leadership & Strategy Labor Cost /

HR Leadership & Strategy FTE
New metric for 2006. Average compensation and

benefits paid to each Director and above HR employee
(e.g., Senior VP of HR) who DO NOT report directly
into an HR function and management and individual
contributors focusing on HR budgeting and metrics
Benefits Labor Cost

Factor
Benefits Labor Cost / Benefits FTE

benefits paid to each employee dedicated to designing
and administering benefit programs

Program Design Labor
Cost Factor

Labor Cost / Benefits Strategy and
Program Design FTE

benefits paid to each employee dedicated to overall

Administration Labor
Cost Factor

Labor Cost / Health & Welfare Plans
Administration FTE

benefits paid to each employee dedicated to the

Cost Factor

Labor Cost / Defined Benefit Plan
Administration FTE

benefits paid to each employee dedicated to pension
Plan Administration
Labor Cost Factor

Labor Cost / Defined Contribution Plan
Administration FTE

benefits paid to each employee dedicated to 401(k)
administration
Leave Management
Labor Cost Factor
Leave Management Labor Cost / Leave

Management FTE

benefits paid to each employee dedicated to
Compensation Labor
Cost Factor
Compensation Labor Cost /

Compensation FTE

Executive
Compensation
Cost Factor

Labor Cost / Executive Compensation
Administration FTE

administering compensation programs for executives
Executive
and Program Design
Labor Cost Factor

Program Design Labor Cost / Executive
Compensation Strategy and Program
Design FTE

benefits paid to each employee dedicated to the strategy
and design of executive compensation program
Note:

Saratoga
13
pwc

Metric Name
Formula
Description
Non Executive
Compensation
Cost Factor

Administration Labor Cost / Non
FTE

administering compensation programs for non-executive
Non Executive
and Program Design
Labor Cost Factor

and Program Design Labor Costs / Non
Program Design FTE

and design of non-executive compensation programs

Labor Cost Factor
Recruiting & Staffing Labor Cost /

Recruiting & Staffing FTE

benefits paid to each employee dedicated to recruitment
strategy, design and administration
Labor Cost Factor
HR Talent Management Labor Cost / HR

Talent Management FTE

benefits paid to each employee dedicated to workforce
strategy and program design, succession strategy and
program design, performance management design, and
organizational development
Employee & Labor

Relations Labor Cost
Factor
Employee & Labor Relations Labor Cost /

Employee & Labor Relations FTE

benefits paid to each employee dedicated to policy
development, employee advocacy, diversity programs,
disciplinary action administration, and union grievance
management
Workforce Mobility
Services Labor Cost
Factor
Workforce Mobility Services Labor Cost /

Workforce Mobility Services FTE

benefits paid to each employee dedicated to employee
transfer processing, relocation services, severance
plan administration, outplacement services, expatriate
administration, service award administration, and
performance management administration
HRIT Labor Cost Factor
HRIT Labor Cost / HRIT FTE

benefits paid to each employee dedicated to strategy,
design and maintenance of the HRIT function
Vendor Management
Labor Cost Factor
Vendor Management Labor Cost / Vendor New metric for 2006. Average compensation and
Management FTE
benefits paid to each employee dedicated to dedicated
to managing external HR vendors
Employee Records &

Cost Factor

Labor Cost / Employee Records &
Administration FTE

records administration, transaction processing and
reporting, employee records, and knowledge base
management
Communications Labor
Cost Factor
Communications Labor Cost /

Communications FTE

related communications including employee reward
changes, executive communications, and merger or
divestiture related communications
HR Customer Service
Center Labor Cost
Factor
HR Customer Service Center Labor Cost

/ HR Customer Service Center FTE

benefits paid to each employee dedicated to tier 1 call
center support for benefits, compensation, employee
relations, and administration (e.g., address updates)
Note:

Saratoga
14
pwc

Metric Name
Formula
Description
Business Partners Labor Business Partners Labor Cost / Business

Cost Factor
Partners FTE

benefits paid to each HR Director and above employee
who work primarily with senior levels of management
within lines of business designing and executing
business strategies
HR Generalist Labor
Cost Factor
HR Generalist Labor Cost / HR Generalist New metric for 2006. Average compensation and
FTE
benefits paid to each employee whose primary
responsibility is a customer facing role that supports a
set of employees
Payroll and Time &

Attendance Labor Cost
Factor
Payroll and Time & Attendance Labor

Cost / Payroll and Time & Attendance
FTE

benefits paid to each employee dedicated to Payroll and
Time & Attendance
Payroll Labor Cost

Factor
Payroll Labor Cost / Payroll FTE

and design of the administrative payroll function and
those supporting payroll administration/processing
Time & Attendance

Labor Cost Factor
Time & Attendance Labor Cost / Time &

Attendance FTE

benefits paid to each employee dedicated to time and
attendance administration and maintenance
Training Labor Cost

Factor
Training Labor Cost / Training FTE

benefits paid to each employee dedicated to training
HR Labor Costs Per

Employee
Direct HR Labor Costs / Regular

Headcount
The per employee investment in Direct HR compensation

and benefits
Indirect HR Labor Costs

Per Employee
Indirect HR Labor Costs/ Regular

Headcount
New metric for 2006. The per employee investment in

Indirect HR compensation and benefits
HR Leadership &
Strategy Labor Costs
Per Employee
HR Leadership & Strategy Labor Costs /

Regular Headcount
New metric for 2006. The per employee investment in HR

Leadership & Strategy compensation and benefits
HR Benefits Labor
Costs Per Employee
Benefits Labor Costs / Regular

Headcount
The per employee investment in HR Benefits salary and

benefits

Program Design Labor
Costs Per Employee

Labor Costs / Regular Headcount

Benefits Strategy and Program Design compensation
and benefits.

Costs Per Employee


Health & Welfare Plans Administration compensation and
benefits

Costs Per Employee


Defined Benefit Plan Administration compensation and
benefits
Plan Administration
Labor Costs Per
Employee


Defined Contribution Plan Administration compensation
and benefits
Leave Management
Labor Costs Per
Employee
Leave Management Labor Costs /

Regular Headcount

Leave Management compensation and benefits
Note:

Saratoga
15
pwc

Metric Name
Formula
Description
HR Compensation Labor Compensation Labor Costs / Regular

Costs Per Employee
Headcount
The per employee investment in HR Compensation

compensation and benefits
Executive
Compensation
Costs Per Employee


Executive Compensation Administration compensation
and benefits
Executive
and Program Design
Labor Costs Per
Employee

Program Design Labor Costs / Regular
Headcount

Executive Compensation Strategy and Program Design
Non Executive
Compensation
Costs Per Employee

Administration Labor Costs / Regular
Headcount
New metric for 2006. The per employee investment

in Non-Executive Compensation Administration
Non Executive
and Program Design
Labor Costs Per
Employee

and Program Design Labor Costs /
Regular Headcount

Non-Executive Compensation Strategy and Program
Design compensation and benefits

Labor Costs Per
Employee
Recruiting & Staffing Labor Costs /

Regular Headcount
The per employee investment in HR Recruiting and

Staffing compensation and benefits
Labor Costs Per
Employee
HR Talent Management Labor Costs /

Regular Headcount

Talent Management compensation and benefits
Employee & Labor

Relations Labor Costs
Per Employee
Employee & Labor Relations Labor Costs

/ Regular Headcount
The per employee investment in Employee & Labor

Relations compensation and benefits
Workforce Mobility
Services Labor Costs
Per Employee
Workforce Mobility Services Labor Costs

/ Regular Headcount

Workforce Mobility Services compensation and benefits
HRIT Labor Costs Per

Employee
HRIT Labor Costs / Regular Headcount
The per employee investment in HRIT compensation and

benefits
Vendor Management
Labor Costs Per
Employee
Vendor Management Labor Costs /

Regular Headcount
The per employee investment in Vendor Management

Employee Records &

Costs Per Employee


Employee Records & Administration compensation and
benefits
Communications Labor
Costs Per Employee
Communications Labor Costs / Regular

Headcount

Communications compensation and benefits
HR Customer Service
Center Labor Costs Per
Employee
HR Customer Service Center Labor


Customer Service Center compensation and benefits
Business Partners Labor Business Partners Labor Costs / Regular

Costs Per Employee
Headcount
Note:
The per employee investment in Business Partners


Saratoga
16
pwc

Metric Name
HR Generalist Labor
Costs Per Employee
Formula
Description
HR Generalist Labor Costs / Regular

Headcount
The per employee investment in HR Generalist

Payroll and Time &

Payroll and Time & Attendance Labor
Attendance Labor Costs Costs / Regular Headcount
Per Employee

in Payroll and Time & Attendance compensation and
benefits
Payroll Labor Costs Per

Employee
Payroll Labor Costs / Regular Headcount

Payroll compensation and benefits
Time & Attendance

Labor Costs Per
Employee
Time & Attendance Labor Costs / Regular New metric for 2006. The per employee investment in
Headcount
Time & Attendance compensation and benefits
Training Labor Costs Per Training Labor Costs / Regular

Employee
Headcount

Training compensation and benefits
HR Systems Costs as
a Percent of Direct HR
Costs
HR Systems Costs / Direct HR Costs
The per employee investment in HRIT compensation and

benefits
HR Systems Costs Per

Employee
HR Systems Costs/ Regular Headcount
New metric for 2006. Amount invested directly in the HR

systems for each headcount employee
Benefits Systems Costs

Per Employee
Benefits Systems Costs / Regular

Headcount
New metric for 2006. Amount invested directly in

systems focused on the design and administration of
benefit programs
Compensation Systems
Costs Per Employee
Compensation Systems Costs / Regular

Headcount

systems focused on compensation strategy, design and
administration

Systems Costs Per
Employee
Recruiting & Staffing Systems Costs /

Regular Headcount

systems focused on recruitment strategy, design and
administration
Systems Costs Per
Employee
HR Talent Management Systems Costs /

Regular Headcount

systems focused on workforce strategy and program
design, succession strategy and program design,
performance management design, and organizational
development
Payroll and Time &

Attendance Systems
Costs Per Employee
Payroll and Time & Attendance Systems

New metric for 2006. Amount invested directly in Payroll

and Time & Attendance Systems
Training Systems Costs

Per Employee
Training Systems Costs / Regular

Headcount

systems focused on training strategy, design and
administration
HR Systems
Implementation Costs
Per Employee
HR Systems Implementation Costs /

Regular Headcount

implementing any HR system
Benefits System
Per Employee
Benefits System Implementation Costs /

Regular Headcount

implementing any system focusing on the design and
administration of benefit programs
Compensation System
Per Employee
Compensation System Implementation


implementing any system focusing on compensation
Note:

Saratoga
17
pwc

Metric Name
Formula
Description

System Implementation
Costs Per Employee
Recruiting & Staffing System

Implementation Costs / Regular
Headcount

in implementing any system focusing on recruitment
System Implementation
Costs Per Employee
HR Talent Management System

Headcount

in implementing any system focusing on workforce
Payroll and Time &

Attendance System
Per Employee
Payroll and Time & Attendance System

Headcount

implementing any Payroll and Time & Attendance System
Training System
Per Employee
Training System Implementation Costs /

Regular Headcount

implementing any system focusing on training strategy,
design and administration. Saratogas standard
approach is a three year amortization
HR Systems Upgrade
Costs Per Employee
HR Systems Upgrade Costs / Regular

Headcount

upgrading any HR system
Benefits System
Upgrade Costs Per
Employee
Benefits System Upgrade Costs / Regular New metric for 2006. The per employee investment
Headcount
in upgrading any system focusing on the design and
Compensation System
Upgrade Costs Per
Employee
Compensation System Upgrade Costs /

Regular Headcount

in upgrading any system focusing on compensation
strategy, design and administration. Saratogas standard

System Upgrade Costs
Per Employee
Recruiting & Staffing System Upgrade


upgrading any system focusing on recruitment strategy,
design and administration. Saratogas standard
System Upgrade Costs
Per Employee
HR Talent Management System Upgrade


upgrading any system focusing on workforce strategy
and program design, succession strategy and program
design, performance management design, and
Payroll and Time &

Attendance System
Upgrade Costs Per
Employee

Upgrade Costs / Regular Headcount

upgrading any Payroll and Time & Attendance system
Training System
Upgrade Costs Per
Employee
Training System Upgrade Costs / Regular

Headcount

upgrading any system focusing on dedicated to training
HR Systems Ongoing
Maintenance Per
Employee
HR Systems Ongoing Maintenance Costs New metric for 2006. The per employee investment in
/ Regular Headcount
maintaining any HR system
Benefits System
Ongoing Maintenance
Costs Per Employee
Benefits System Ongoing Maintenance

Note:

in maintaining any system focused on the design and

Saratoga
18
pwc

Metric Name
Formula
Description
Compensation System
Ongoing Maintenance
Costs Per Employee
Compensation System Ongoing

Maintenance Costs / Regular Headcount

in maintaining any system focused on compensation

System Ongoing
Maintenance Costs Per
Employee
Recruiting & Staffing System Ongoing


maintaining any system focused on recruitment strategy
and design
System Ongoing
Maintenance Costs Per
Employee
HR Talent Management System Ongoing


in maintaining any system focused on workforce
Payroll and Time &

Attendance System
Ongoing Maintenance
Costs Per Employee

Ongoing Maintenance Costs / Regular
Headcount

maintaining any Payroll and Time & Attendance system
Training System
Ongoing Maintenance
Costs Per Employee
Training System Ongoing Maintenance


maintaining any system focused on training strategy,
design and administration
HR Consultant &
Contractor Costs As a
Percent of Direct HR
Expenses
Direct HR Consultant & Contractor Costs/ New metric for 2006. The percent of direct HR expenses
Direct HR Costs
devoted to a third party vendor providing advisory/
consulting projects around a HR program
HR Consultant &
Contractor Costs Per
Employee
Direct HR Consultant & Contractor Costs/ New metric for 2006. The per employee investment in
Regular Headcount
having a third party vendor providing advisory/consulting
projects around a HR program
HR Leadership &
Strategy Consultant and
Employee
HR Leadership & Strategy Consultant and New metric for 2006. The per employee investment in
Contractor Costs / Regular Headcount
to Director and above HR employees (e.g., Senior VP of
HR) who DO NOT report directly into an HR function and
management and individual contributors focusing on HR
budgeting and metrics
Benefits Consultant &

Employee
Benefits Consultant & Contractor Costs /

Regular Headcount

projects around the design and administration of benefit
programs
Benefits Strategy
and Program Design
Consultant & Contractor
Costs Per Employee

Consultant & Contractor Costs / Regular
Headcount

projects around overall benefits strategy for the
organization and designing plan provisions and programs
Health & Welfare

Consultant and
Employee

Consultant and Contractor Costs /
Regular Headcount

projects around the administration of health and welfare
programs
Defined Benefit
Plan Administration
Costs Per Employee

Headcount

projects around pension administration and retiree
benefits administration
Note:

Saratoga
19
pwc

Metric Name
Formula
Description
Plan Administration
Costs Per Employee

Headcount

projects around 401(k) administration
Leave Management
Costs Per Employee
Leave Management Consultant &


projects around the administration of employee leave
Compensation
Costs Per Employee
Compensation Consultant & Contractor


projects around compensation strategy, design and
administration
Executive
Compensation
Administration
Costs Per Employee

Headcount

projects around the administration of compensation
programs for executives
Executive
and Program Design
Costs Per Employee

Program Design Consultant & Contractor

projects around the strategy and design of executive
compensation programs
Non Executive
Compensation
Administration
Costs Per Employee

Administration Consultant/Contractor
Costs

projects around the administration of compensation
programs for non-executives
Non Executive
and Program Design
Costs Per Employee

and Program Design Consultant &

projects around the strategy and design of non-executive
compensation programs

Costs Per Employee
Recruiting & Staffing Consultant and

New metric for 2006. Te per employee investment in

projects around recruitment strategy, design and
administration
Costs Per Employee
HR Talent Management Consultant &


projects around workforce strategy and program design,
succession strategy and program design, performance
management design, and organizational development
Employee & Labor

Relations Consultant
and Contractor Costs
Per Employee
Employee & Labor Relations Consultant

and Contractor Costs / Regular
Headcount

projects around policy development, employee
advocacy, diversity programs, disciplinary action
administration, and union grievance management
Note:

Saratoga
20
pwc

Metric Name
Formula
Description
Workforce Mobility
Services Consultant &
Employee
Workforce Mobility Services Consultant &


in having a third party vendor providing advisory/
consulting around employee transfer processing,
relocation services, and administration of outplacement
services, severance plan, expatriate, service award, and
performance management
HRIT Consultant &

Employee
HRIT Consultant & Contractor Costs /

Regular Headcount

projects around strategy, design and maintenance of the
HRIT function
Vendor Management
Costs Per Employee
Vendor Management Consultant &


projects around managing external HR vendors
Employee Records
& Administration
Consultant and
Employee

Regular Headcount

projects around employee records administration,
transaction processing and reporting, employee records,
and knowledge base management
Communications
Costs Per Employee
Communications Consultant & Contractor New metric for 2006. The per employee investment in
projects around employee related communications
including employee reward changes, executive
communications, and merger or divestiture related
communications
HR Customer Service
Center Consultant and
Employee
HR Customer Service Center Consultant

& Contractor Costs / Regular Headcount
Business Partner
Costs Per Employee
Business Partner Consultant & Contractor New metric for 2006. The per employee investment in
projects around HR Director and above employees
working primarily with senior levels of management
within lines of business designing and executing
business strategies
HR Generalist
Costs Per Employee
HR Generalist Consultant & Contractor


projects supporting HR Generalists
Payroll and Time &

Attendance Consultant
and Contractor Costs
Per Employee
Payroll and Time & Attendance

Regular Headcount

projects supporting Payroll and Time & Attendance
Payroll Consultant &

Employee
Payroll Consultant & Contractor Costs /

Regular Headcount

consulting projects around strategy and design of the
administrative payroll function and those supporting
payroll administration/processing
Note:

projects around tier 1 call center support for benefits,
compensation, employee relations, and administration
(e.g., address updates)

Saratoga
21
pwc

Metric Name
Formula
Description
Time & Attendance

Consultant and
Employee
Time & Attendance Consultant and


projects around time and attendance administration and
maintenance
Training Consultant &

Employee
Training Consultant & Contractor Costs /

Regular Headcount

consulting projects around training strategy, design and
administration
HR Outsourcing Costs
As a Percent of Direct
HR Expenses
Direct HR Outsourcing Costs/ Direct HR

Costs
New metric for 2006. The percent of direct HR expenses

devoted to administering all or a portion of the HR
function
HR Outsourcing Costs
Per Employee
Direct HR Outsourcing Costs/ Regular

Headcount

outsourcing all or a portion of HR service
HR Leadership &
Strategy Outsourcing
Costs Per Employee
HR Leadership & Strategy Outsourcing


in outsourcing all or a portion of services related to
Director and above HR employees (e.g., Senior VP of
HR) who DO NOT report directly into an HR function and
management and individual contributors focusing on HR
budgeting and metrics
Benefits Outsourcing
Costs Per Employee
Benefits Outsourcing Costs / Regular

Headcount

outsourcing all or a portion of services related to the
design and administration of benefit programs
Benefits Strategy
and Program Design
Outsourcing Costs Per
Employee

Outsourcing Costs / Regular Headcount

outsourcing all or a portion of services related to overall
Health & Welfare

Employee


Defined Benefit
Plan Administration
Employee


outsourcing all or a portion of services related to pension
Plan Administration
Employee


outsourcing all or a portion of services related to 401(k)
administration
Leave Management
Employee
Leave Management Outsourcing Costs /

Regular Headcount

Compensation
Employee
Compensation Outsourcing Costs /

Regular Headcount

Executive
Compensation
Administration
Employee


administration of compensation programs for executives
Note:

Saratoga
22
pwc

Metric Name
Formula
Description
Executive
and Program Design
Employee

Program Design Outsourcing Costs /
Regular Headcount

the strategy and design of executive compensation
programs
Non Executive
Compensation
Administration
Employee

Administration Outsourcing Costs /
Regular Headcount

administration of compensation programs for nonexecutives
Non Executive
and Program Design
Employee

and Program Design Outsourcing Costs /
Regular Headcount

strategy and design of non-executive compensation
programs

Employee
Recruiting & Staffing Outsourcing Costs /

Regular Headcount

recruitment strategy, design, and administration
Employee
HR Talent Management Outsourcing


workforce strategy and program design, succession
strategy and program design, performance management
design, and organizational development
Employee & Labor

Relations Outsourcing
Costs Per Employee
Employee & Labor Relations Outsourcing


outsourcing all or a portion of services related to policy
development, employee advocacy, diversity programs,
disciplinary action administration, and union grievance
management
Workforce Mobility
Services Outsourcing
Costs Per Employee
Workforce Mobility Services Outsourcing


employee transfer processing, relocation services, and
administration of outplacement services, severance
plan, expatriate, service award, and performance
management
HRIT Outsourcing Costs

Per Employee
HRIT Outsourcing Costs / Regular

Headcount

outsourcing all or a portion of services related to strategy,
design and maintenance of the HRIT function
Vendor Management
Employee
Vendor Management Outsourcing Costs / New metric for 2006. The per employee investment
Regular Headcount
managing external HR vendors
Employee Records
& Administration
Employee

Note:

employee records administration, transaction processing
and reporting, employee records, and knowledge base
management

Saratoga
23
pwc

Metric Name
Formula
Description
Communications
Employee
Communications Outsourcing Costs /

Regular Headcount
HR Customer Service
Center Outsourcing
Costs Per Employee
HR Customer Service Center Outsourcing New metric for 2006. The per employee investment in
outsourcing all or a portion of services related to tier 1
call center support for benefits, compensation, employee
relations, and administration (e.g., address updates)
Business Partner
Employee
Business Partner Outsourcing Costs /

Regular Headcount

outsourcing all or a portion of services related to HR
Director and above employees who work primarily with
senior levels of management within lines of business
designing and executing business strategies
HR Generalist
Employee
HR Generalist Outsourcing Costs /

Regular Headcount

outsourcing all or a portion of projects supporting HR
Generalists
Payroll and Time

& Attendance
Employee
Payroll and Time & Attendance


outsourcing all or a portion of projects supporting Payroll
and Time & Attendance
Payroll Outsourcing
Costs Per Employee
Payroll Outsourcing Costs / Regular

Headcount

strategy and design of the administrative payroll function
and those supporting payroll administration/processing
Time & Attendance

Employee
Time & Attendance Outsourcing Costs /

Regular Headcount

outsourcing all or a portion of services related to time
and attendance administration and maintenance
Training Outsourcing
Costs Per Employee
Training Outsourcing Costs / Regular

Headcount

outsourcing all or a portion of services related to training
HR Miscellaneous &
Overhead Allocations
Cost As a Percent of
Direct HR Expenses
Direct HR Miscellaneous & Overhead

Allocations / Direct HR Costs
New metric for 2006. Percent of direct HR expenses

devoted to HR overhead allocations and miscellaneous
costs such as travel, conference, and HR related
membership fees (e.g., SHRM).
HR Miscellaneous &
Overhead Allocations
Cost Per Employee
Direct HR Miscellaneous & Overhead

Allocations/ Regular Headcount

HR overhead allocations and miscellaneous costs such
as travel, conference, and HR related membership fees
(e.g., SHRM)
Percent of Total Calls

Resolved with First
Touch
Total First Touch Resolution Calls / Total

Calls
New metric for 2006. Percent of total calls received by

the organizations HR Service Center that were resolved
without escalation during the survey period
Percent of Benefit Calls

Resolved with the First
Touch
Total First Touch Resolution Benefit Calls

/ Total Benefit Calls
Percent of total benefit calls received by the

organizations HR Service Center that were resolved
Percent of Employee
Total First Touch Resolution Employee
Relations Calls Resolved Relations Calls / Total Employee
with the First Touch
Relations Calls
Note:

employee related communications including employee
reward changes, executive communications, and merger
or divestiture related communications
Percent of total employee relations calls received by the


Saratoga
24
pwc

Metric Name
Formula
Description
Percent of HR
Administration Calls
Touch
Total First Touch Resolution HR

Administration Calls / Total HR
Administration Calls
Percent of total HR administration calls received by the

Percent of Payroll Calls

Touch
Total First Touch Resolution Payroll Calls

/ Total Payroll Calls
Percent of total payroll calls received by the

Benefit Call Percent
Total Benefit Calls / Total Calls
Percent of total calls received by the organizations HR

Service Center that were related to employee benefits
Employee Relations Call

Percent
Total Employee Relations Calls / Total

Calls

Service Center that were related to employee relations
issues
Payroll Call Percent
Total Payroll Calls / Total Calls

Service Center that were related to employee payroll
issues
Percent of Workforce on
Employee Self Service
Number of Employees on Self Service /

Regular Headcount
Percent of employee headcount with access to employee

self service functionality such as the ability to update a
change of address form
Percent of Management Number of Managers on Self Service /

on Manager Self Service Regular Headcount
Percent of Manager and Executive headcount with

access to Manager self service functionality such as the
ability to update a change of address form
Self Service Resolution
Self Service Resolution
Percent of benefit, payroll, employee relations, and

administration transactions that were resolved by the
employee, without the assistance of HR
Cases Resolved within

24 hours
Cases Resolved within 24 hours

administration cases that were resolved within 24 hours
by HR Service Center employees

3 days
Cases Resolved within 3 days

administration cases that were resolved within 3 days by
HR Service Center employees

5 days
Cases Resolved within 5 days

administration cases that were resolved within 5 days by
HR Service Center employees
Payroll Adjustment
Percent
Total Pay Adjustments / Number of

Payments Processed
Percent of employee payments processed that required a

manual or automated pay adjustment
Payroll Overpayment
Percent
Number of Final Payments With An

Overpayment / Number of Payments
Processed
Percent of employee payments processed that resulted

in an overpayment
Payroll Manual Payment

Percent
Number of Manual Payments / Number of Percent of employee payments processed that required a
Payments Processed
manual payment outside of the normal pay run
Percent of Workforce on
Direct Deposit
Number of Employees On Direct Deposit

/ Regular Headcount
Percent of employee headcount on direct deposit
*Average Training
Sessions Attended
Total Number of Training Sessions

Attended / Regular Headcount
Average number of training sessions attended by each

employee
Training Cost Factor
Total Training Cost / Total Number of

Training Sessions Attended
Average amount spent on training per training session

attended
Note:

Saratoga
25
pwc

Metric Name
*Training Headcount
Investment Factor
Formula
Description
Total Training Cost / Regular Headcount
Amount invested directly in employee training and

development for each headcount employee
*Training FTE Investment Total Training Cost / Regular FTE

Factor
Amount invested directly in employee training and

development for each full-time equivalent (FTE) employee
*Training Cost Per Hour
Total Training Cost / Total Training Hours
Average amount spent for each hour of training
External Training Cost

Per Hour
External Training Cost / External Training

Hours
Cost per hour of delivering employee training through an

external source
Internal Training Cost

Per Hour
Internal Training Cost / Internal Training

Hours
Cost per hour of delivering employee training internally
Training Cost Expense

Percent
Total Training Cost / Operating Expense
Percent of operating expenses devoted to training

expenses
External Training Cost

Percent
External Training Cost / Total Training

Cost
Percent of total training costs that occurred due to

externally designed or delivered employee training
Internal Training Cost

Percent
Internal Training Cost / Total Training Cost Percent of total training costs associated with internal
employee training.
*Training Staff Ratio
Regular Headcount / Training Headcount
Number of headcount employees supported by Training

employees
Management
Completing Leadership
Development Course
Management Completing Leadership

Development Course / Management
Headcount
Percent of Management that completed leadership

development courses during the survey period
Compensation and Benefits

Metric Name
Formula
Description
*Compensation Revenue Regular Compensation Cost / Revenue

Percent
Percent of revenue dedicated to compensation for

employees.
Workforce Employees
Compensation Revenue
Percent
Workforce On Payroll Compensation Cost Percent of revenue dedicated to compensation for

/ Revenue
employees (including all regular employees and
Total Compensation
Revenue Percent
Total Headcount Compensation Cost /

Revenue
Percent of revenue dedicated to compensation for

employees (including all contingent employees)
*Labor Cost Revenue

Percent
(Regular Compensation Cost + Benefits

Cost EPTNW) / Revenue
Employee compensation and benefit costs as a percent

of revenue.
Workforce Employees
Labor Cost Revenue
Percent

Cost + Benefit Costs EPTNW) / Revenue
Employee compensation and benefit costs (including

all regular employees and contingents on payroll) as a
percent of revenue.
Total Labor Cost

Revenue Percent
(Total Headcount Compensation Cost +

Benefit Costs EPTNW) / Revenue
Employee compensation and benefit costs (including all

contingent employees) as a percent of revenue.
*Compensation Expense Regular Compensation Cost / Operating

Percent
Expense
Workforce Employees
Compensation Expense
Percent
Note:
Percent of operating expenses devoted to employee

compensation costs.
Workforce On Payroll Compensation Cost Percent of operating expenses devoted to employee

/ Operating Expense
compensation costs (including all regular employees and

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Metric Name
Formula
Description
Total Compensation
Expense Percent

Operating Expense

compensation costs (including all contingent employees)
*Labor Cost Expense

Percent
(Regular Compensation Cost + Benefit

Costs EPTNW) / Operating Expense

compensation and benefit costs.
Workforce Employees
Labor Cost Expense
Percent

Cost + Benefit Costs EPTNW) / Operating compensation and benefit costs (including all regular
Expense
Total Labor Cost

Expense Percent
(Total Headcount Compensation Cost

+ Benefit Costs EPTNW) / Operating
Expense

compensation and benefit costs (including all contingent
employees)
*Employee Cost Factor
Regular Compensation Cost / Regular

FTE
Average compensation per FTE.
Workforce Employee
Cost Factor
Workforce On Payroll Compensation Cost Average compensation per FTE (including all regular
/ Workforce On Payroll FTE
Total Employee Cost

Factor

Total FTE
Average compensation per FTE (including all contingent

employees)
Executive Employee
Cost Factor
Executive Compensation Cost /

Executive FTE
Average compensation paid to each Executive FTE.
Manager Employee Cost Manager Compensation Cost / Manager

Factor
FTE
Average compensation per Manager FTE.
Professional Employee
Cost Factor
Professional Compensation Cost /

Professional FTE
Average compensation per Professional FTE.
Sales Employee Cost

Factor
Sales Compensation Cost / Sales FTE
Average compensation per Sales FTE.
Office & Clerical

Employee Cost Factor
Office & Clerical Compensation Cost /

Office & Clerical FTE
Average compensation per Office and Clerical FTE.
Operative Employee
Cost Factor
Operative Compensation Cost /

Operative FTE
Average compensation per Operative FTE.
Employee Cost Factor

Including Equity Based
Compensation
(Regular Compensation Cost + Total

Equity Based Pay) / Regular FTE
New metric for 2006. Average compensation and equity

based pay per FTE.
Executive Employee
Cost Factor Including
Equity Based
Compensation
(Executive Compensation Cost +

Executive Equity Based Pay) / Executive
FTE

based pay per Executive FTE.
Manager Employee Cost (Manager Compensation Cost + Manager New metric for 2006. Average compensation and equity
Factor Including Equity
Equity Based Pay) / Manager FTE
based pay per Manager FTE.
Based Compensation
Professional Employee
Cost Factor Including
Equity Based
Compensation
(Professional Compensation Cost

+ Professional Equity Based Pay) /
Professional FTE
Sales Employee Cost

Based Compensation
(Sales Compensation Cost + Sales Equity New metric for 2006. Average compensation and equity
Based Pay) / Sales FTE
based pay per Sales FTE.
Note:

based pay per Professional FTE.

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Metric Name
Formula
Description
Compensation Impact of New Hire Compensation Cost /

Replacement Hires
Separated Employees Compensation
Cost
New metric for 2006. The difference between salaries of

newly hired employees and employees who separated
during the survey period.
Compa Ratio
Average Compa Ratio
Evaluation of how closely organizational pay rates

compare to the organizations defined midpoint of a pay
range.
*Labor Cost Factor
(Regular Compensation Cost * (1

+ (Benefit Costs EPTNW / Regular
Compensation Cost))) / Regular FTE
Average compensation and benefits per FTE.
Workforce Employees
Labor Cost Factor

Cost * (1 + (Benefit Costs EPTNW
/ Regular Compensation Cost))) /
Average compensation and benefits per FTE (including

all regular employees and contingents on payroll)
Total Labor Cost Factor
(Total Headcount Compensation Cost

* (1 + (Benefit Costs EPTNW / Regular
Compensation Cost))) / Total FTE
Average compensation and benefits per FTE (including

all contingent employees)
Executive Labor Cost

Factor
(Executive Compensation Cost * (1

Compensation Cost))) / Executive FTE
Average compensation and benefits paid to each

Executive FTE.
Manager Labor Cost

Factor
(Manager Compensation Cost * (1

Compensation Cost))) / Manager FTE

Manager FTE.
Professional Labor Cost

Factor
(Professional Compensation Cost *

(1 + (Benefit Costs EPTNW / Regular
Compensation Cost))) / Professional FTE

Professional FTE.
Sales Labor Cost Factor
(Sales Compensation Cost * (1 + (Benefit

Costs EPTNW / Regular Compensation
Cost))) / Sales FTE
Average compensation and benefits paid to each Sales

FTE.
Office & Clerical Labor

Cost Factor
(Office & Clerical Compensation Cost

* (1 + (Benefit Costs EPTNW / Regular
Compensation Cost))) / Office & Clerical
FTE
Average compensation and benefits paid to each Office

and Clerical FTE.
Operative Labor Cost

Factor
(Operative Compensation Cost * (1

Compensation Cost))) / Operative FTE

Operative FTE.
Labor Cost Factor

Compensation:
(Regular Compensation Cost + Total

Equity Based Pay * (1 + (Benefit Costs
EPTNW / Regular Compensation Cost +
Total Equity Based Pay))) / Regular FTE
New metric for 2006. Average salary, equity based pay,

and benefits per FTE.
Executive Labor Cost

Based Compensation
(Executive Compensation Cost +

Executive Equity Based Pay * (1 +
and benefits per Executive FTE.
(Benefit Costs EPTNW / Regular
Compensation Cost + Total Equity Based
Pay))) / Executive FTE
Manager Labor Cost

Based Compensation
(Manager Compensation Cost + Manager New metric for 2006. Average salary, equity based pay,
Equity Based Pay * (1 + (Benefit Costs
and benefits per Manager FTE.
EPTNW / Regular Compensation Cost +
Total Equity Based Pay))) / Manager FTE
Note:

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Metric Name
Formula
Description
Professional Labor Cost

Based Compensation
(Professional Compensation Cost +

Professional Equity Based Pay * (1
and benefits per Professional FTE.
Compensation Cost + Total Equity Based
Pay))) / Professional FTE
Sales Labor Cost Factor

Compensation
(Sales Compensation Cost + Sales Equity New metric for 2006. Average salary, equity based pay,
Based Pay * (1 + (Benefit Costs EPTNW
and benefits per Sales FTE.
/ Regular Compensation Cost + Total
Equity Based Pay))) / Sales FTE
*Variable Compensation
Percent
Variable Compensation / Regular

Compensation Cost
Percent of compensation costs dedicated to variable

compensation.
*Overtime Pay Percent
Overtime Pay / Regular Compensation

Cost
Percent of compensation costs devoted to overtime pay.
*Performance Bonus
Pay Percent
Performance Bonus Pay / Regular

Compensation Cost
Percent of compensation costs devoted to performance

bonuses.
Executive Bonus
Compensation Percent
Executive Performance Bonus Pay /

Executive Compensation Cost
Percent of Executive pay received from performancerelated bonuses.
Manager Bonus
Manager Performance Bonus Pay /

Manager Compensation Cost
Percent of Manager pay received from performancerelated bonuses.
Professional Bonus
Professional Performance Bonus Pay /

Professional Compensation Cost
Percent of Professional pay received from performancerelated bonuses.
Sales Bonus
Sales Performance Bonus Pay / Sales

Compensation Cost
Percent of Sales pay received from performance-related

bonuses.
Office & Clerical Bonus

Office & Clerical Performance Bonus Pay

/ Office & Clerical Compensation Cost
Percent of Office and Clerical pay received from

performance-related bonuses.
Operative Bonus
Operative Performance Bonus Pay /

Operative Compensation Cost
Percent of Operative pay received from performancerelated bonuses.
Bonus Pay Per

Employee
Performance Bonus Pay / Employees

Receiving Performance Bonus
Average pay for performance incentive for each

employee receiving a performance bonus.
Bonus Pay Per

Executive
Executive Performance Bonus Pay /

Average performance bonus per Executive receiving a
Executives Receiving Performance Bonus bonus.
Bonus Pay Per Manager
Manager Performance Bonus Pay /

Managers Receiving Performance Bonus
Average performance bonus per Manager receiving a

bonus.
Bonus Pay Per

Professional
Professional Performance Bonus Pay /

Professionals Receiving Performance
Bonus
Average performance bonus per Professional receiving a

bonus.
Bonus Pay Per Sales
Sales Performance Bonus Pay / Sales

Receiving Performance Bonus
Average performance bonus per Sales employee

receiving a bonus.
Bonus Pay Per Office &

Clerical
Office & Clerical Performance Bonus

Pay / Office & Clerical Receiving
Performance Bonus
Average performance bonus per Office and Clerical

employee receiving a bonus.
Bonus Pay Per

Operative
Operative Performance Bonus Pay /

Average performance bonus per Operative employee
Operatives Receiving Performance Bonus receiving a bonus.
Average Equity Based

Pay Per Employee
Total Equity Based Pay / Employees

Receiving Equity Based Pay
Note:
New metric for 2006. Average equity based pay for each
employee receiving equity pay.

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Metric Name
Formula
Description
Executive Equity Based

Compensation Per
Employee
Executive Equity Based Pay / Executives

Executive receiving equity pay.
Manager Equity Based

Compensation Per
Employee
Manager Equity Based Pay / Managers

Manager receiving equity pay.
Professional Equity
Based Compensation
Per Employee
Professional Equity Based Pay /

Professionals Receiving Equity Based
Pay
Professional receiving equity pay.
Sales Equity Based

Compensation Per
Employee
Sales Equity Based Pay / Sales Receiving New metric for 2006. Average equity based pay for each
Equity Based Pay
Sales employee receiving equity pay.
Equity Based Pay

Percent
Total Equity Based Pay / Regular

Compensation Cost
New metric for 2006. The percentage increase in

employee compensation due to equity based pay.
Executive Equity Based

Pay Percent
Executive Equity Based Pay / Executive

Compensation Cost

Executive compensation due to equity based pay.
Manager Equity Based

Pay Percent
Manager Equity Based Pay / Manager

Compensation Cost

Manager compensation due to equity based pay.
Professional Equity
Based Pay Percent
Professional Equity Based Pay /

Professional Compensation Cost

Professional employee compensation due to equity
based pay.
Sales Equity Based Pay

Percent
Sales Equity Based Pay / Sales

Compensation Cost
New metric for 2006. The percentage increase in Sales

compensation due to equity based pay.
Benefit Revenue Percent Total Benefit Costs / Revenue
Percent of revenue devoted to benefit costs.
Benefit Expense Percent Total Benefit Costs / Operating Expense
Percent of operating expenses devoted to benefit costs.
Benefit Compensation
Percent
Benefit Costs - Excluding Payments

for Time Not Worked / Regular
Compensation Cost
Benefit costs as a percentage of compensation cost.
*Benefit Factor
Total Benefit Costs / Regular Headcount
Average cost of benefits per employee.
Healthcare Factor
Healthcare Benefit Payments /

Employees and Retirees Participating in
Health Program
Average cost of healthcare for each covered employee

and retiree.
Healthcare Costs Per

Active Employee
Employer Contribution Towards

Healthcare Coverage for Active
Employees / Employees Participating in
Healthcare Plan
Average amount spent on healthcare payments per

employees participating in an organizations healthcare
plan.
Employer Contribution
to Healthcare Coverage
for Active Employees

Healthcare Coverage for Active
Employees / (Employee Contribution
Towards Healthcare Coverage for Active
Employees + Employer Contribution
Towards Healthcare Coverage for Active
Employees)
Percent of active employee healthcare costs paid for by

the organization.
Pharmacy Costs Per

Active Employee
Employer Share of Prescription Costs

for Active Employees / Employees
Participating in Healthcare Plan
Average pharmacy costs per active employee.
Note:

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Metric Name
Formula
Description
Healthcare Costs Per

Retiree

Healthcare Coverage for Retired
Employees / Retirees Participating in
Healthcare Plan
Employer Contribution
to Healthcare Coverage
for Retirees
Percent of retiree healthcare costs paid for by the

Healthcare Coverage for Retired
organization.
Employees / (Retiree Contribution
towards Healthcare Coverage + Employer
Contribution Towards Healthcare
Coverage for Retired Employees)
Pharmacy Costs Per

Retiree
Employer Share of Prescription Cost

for Retirees / Retirees Participating in
Healthcare Plan
Average pharmacy costs per retiree.
Healthcare Costs as a
Percent of Operating
Expenses
Healthcare Benefit Payments / Operating

Expense
Percent of operating expenses devoted to healthcare

costs.
Legally Required
Payments as a Percent
of Base Salary
Legally Required Payments / Regular

Base Compensation
Legally Required Benefit Payments as a percent of base

salary.
Life Insurance & Death

Benefit Payments as a
Percent of Base Salary
Life Insurance and Death Benefit

Payments / Regular Base Compensation
Life Insurance & Death Benefit payments as a percent of

base salary.
Retirement & Savings

Plan Costs as a Percent
of Base Salary
Retirement and Savings Plan Payments /

Regular Base Compensation
Retirement and savings plan costs as a percent of base

salary.
Payments for Time Not

Worked as a Percent of
Base Salary
Payments for Time Not Worked / Regular

Base Compensation
Payments for Time Not Worked as a percent of base

salary.
Legally Required
Payments Benefit
Percent Breakdown
Legally Required Payments / Total Benefit Percent of total benefit costs dedicated to legally
Costs
required payments such as Social Security and FICA
taxes.
Retirement & Savings

Plan Payments Benefit
Percent Breakdown
Retirement and Savings Plan Payments /

Total Benefit Costs
Percent of total benefit costs dedicated to retirement and

savings plan payments such as 401(k) and pensions.
Life Insurance & Death

Payments Benefit
Percent Breakdown
Life Insurance and Death Benefit

Payments / Total Benefit Costs
Percent of total benefit costs dedicated to life insurance

and death benefit payments.
Healthcare Related
Payments Benefit
Percent Breakdown
Healthcare Benefit Payments / Total

Benefit Costs
Percent of total benefit costs dedicated to healthcare

benefit payments.
Payments for Time Not

Worked Benefit Percent
Breakdown
Payments for Time Not Worked / Total

Benefit Costs
Percent of total benefit costs dedicated to payments for

time not worked such as vacation, holiday, and sick pay
Miscellaneous Benefit
Payments Benefit
Percent Breakdown
Miscellaneous Benefit Payments / Total

Benefit Costs
Percent of total benefit costs dedicated to miscellaneous

benefit payments such as tuition reimbursement,
employee wellness programs, automobile allowance, and
etc.
Note:
Average amount spent for healthcare benefits per retiree.

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Metric Name
Formula
Description
Defined Benefit
Accounting Service
Costs as a Percent of
Compensation Costs
Defined Benefit Accounting Service

Costs / Regular Compensation Costs
New metric for 2006. The present value of benefits

accrued during the plan year as a percent of
compensation costs.
Defined Benefit
Projected Benefit
Funded Ratio for
Funded Plans
Defined Benefit Plan Assets / Projected

Obligations for Defined Benefit Plan
New metric for 2006. The market value of defined benefit

plan assets at the end of the fiscal year.

Prior Calendar Year
Assets Rate of Return
(Net of Expenses)
Defined Benefit Plan Prior Calendar Year

Assets Rate of Return (Net of Expenses)
New metric for 2006. The return rate of an organizations

defined benefit plan minus plan expenses.
401 (k) Plan Eligibility

Percent
Employees Eligible for 401 (k) Plan /

Regular Headcount
Percent of workforce eligible for an employer sponsored

401 (k) plan.
401 (k) Plan Utilization
Employees Participating in 401 (k) Plan /

Employees Eligible for 401 (k) Plan
Percent of employees eligible for an employer sponsored

401(k) plan who are participating in the plan.
401 (k) Costs Per

Participating Employee
Employer Contribution to 401 (k) Plan /

Employees Participating in 401(k) Plan
Average amount spent on employer sponsored 401 (k)

programs (including matching funds) for all participating
employees during the survey period.
401 (k) Percentage

Match
Total Employer Deferrals for 401 (k) Plan /

Employer Matching Contributions to 401
(k) Plan
New metric for 2006. Average employer match to

employee 401 (k) plans.
Tuition Reimbursement
Utilization
Employees Receiving Tuition

Reimbursement / Regular Headcount
Percent of workforce utilizing tuition reimbursement.
Workers Compensation
Factor
Workers Compensation Cost / Regular

Headcount
The amount spent on workers compensation costs per

employee.
Workers Compensation
Claims Paid
Workers Compensation Cost / Number

of Workers Compensation Claims Paid
Average amount spent on active workers compensation

claims paid during the survey period.
Improved Performance
Rating Index
Regular Headcount Receiving Higher

Performance Rating than Previous
Cycle / Regular Headcount Receiving
Performance Rating Last Two
Consecutive Cycles
Percent of employees who received improved

performance ratings compared to the previous year.
Consistent Performance
Rating Index
Regular Headcount Receiving Same

Performance Rating as Previous
Consecutive Cycles
Percent of workforce that received the same

performance rating compared to the previous year.
Decreased Performance
Rating Index
Regular Headcount Receiving Lower

Performance Rating than Previous
Consecutive Cycles
Percent of workforce that received a lower performance

rating compared to the previous year.
Paid Time Off Rate
Paid Time Off Days / FTE Workdays
Percent of workdays employees used for paid time off.
Note:

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pwc
Staffing and Hiring

Metric Name
Formula
Description
*Accession Rate
Total Hires / Regular Headcount
All hires (external and internal) as a percent of employee

headcount
External Accession Rate
External Hires / Regular Headcount
External hires as a percent of employee headcount.
Internal Accession Rate
Internal Hires / Regular Headcount
Internal hires as a percent of employee headcount.
Internal Hires Percent
Internal Hires / Total Hires
Percent of total hires that came from inside the

organization.
Advertising Hiring
Percent
Advertising Hires / Total Hires
Percent of total hires that joined the organization via an

advertising source
Agency Hiring Percent
Agency Hires / Total Hires

external agency
Referral Hiring Percent
Referral Hires / Total Hires

internal employee referral.
College Hiring Percent
College Hires / Total Hires
Percent of total hires that joined the organization via a

college hiring program
Internal Management
Hiring Source
Internal Management Hires / Total

Management Requisitions Filled
Percent of Management requisitions that were filled by

internal management candidates.
Cost Per Hire (Excluding

Relocation)
(Total Hiring Costs (Excluding Relocation)

* 1.1) / Total Hires
Average amount spent on hiring new employees

excluding the cost of relocation
*Cost Per Hire
(Total Hiring Costs * 1.1 Factor) / Total

Hires
Average amount spent on hiring costs for each employee

hired
External Cost Per Hire
(External Hiring Cost * 1.1) / External

Hires
Average amount spent to hire employees from outside of

the organization.
Internal Cost Per Hire
(Internal Hiring Cost * 1.1) / Internal Hires Average amount spent on hiring costs for each internal
hire.
Exempt Cost Per Hire
(Exempt Hiring Costs * 1.1) / Exempt

Hires
Average amount spent to hire Exempt employees.
Nonexempt Cost Per

Hire
(Nonexempt Hiring Costs * 1.1) /

Nonexempt Hires
Average amount spent on hiring costs for each

Nonexempt employee hired.
Advertising Cost Per

Hire
Advertising Hiring Costs / Total Hires
Advertising Cost Per Hire is the average amount spent

on advertising hiring costs for each employee hired
Agency Cost Per Hire
Agency Hiring Costs / Total Hires
Agency Cost Per Hire is the average amount spent on

agency hiring costs for each employee hired
Referral Bonus Cost Per

Hire
Referral Bonus Hiring Costs / Total Hires
Referral Bonus Cost Per Hire is the average amount

spent on referral bonus hiring costs for each employee
hired
Travel Cost Per Hire
Travel Hiring Costs / Total Hires
Travel Cost Per Hire is the average amount spent on

travel hiring costs for each employee hired
Relocation Cost Per Hire Relocation Hiring Costs / Total Hires
Relocation Cost Per Hire is the average amount spent on

relocation hiring costs for each employee hired
HR Recruiter Cost Per

Hire
HR Recruiter Hiring Costs / Total Hires
HR Recruiter Cost Per Hire is the average amount spent

on HR recruiter hiring costs for each employee hired
Advertising Cost Per

Hire Percent
Advertising Hiring Costs / Total Hiring

Costs
Percent of total hiring costs that were devoted to

advertising costs
Agency Cost Per Hire

Percent
Agency Hiring Costs / Total Hiring Costs
Percent of total hiring costs that were devoted to agency

hiring costs
Note:

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pwc
Staffing and Hiring

Metric Name
Formula
Description
Referral Bonus Cost Per

Hire Percent
Referral Bonus Hiring Costs / Total Hiring

Costs
Percent of total hiring costs that were devoted to referral

bonus hiring costs.
Travel Cost Per Hire

Percent
Travel Hiring Costs / Total Hiring Costs
Percent of total hiring costs that were devoted to travel

hiring costs.
Relocation Cost Per Hire Relocation Hiring Costs / Total Hiring

Percent
Costs
Percent of total hiring costs that were devoted to

relocation hiring costs.
HR Recruiter Cost Per

Hire Percent
HR Recruiter Hiring Costs / Total Hiring

Costs
Percent of total hiring costs devoted to HR Recruiter

Hiring Costs.
College Recruitment
Program Cost Factor
College Recruiting Cost / College Hires
Average amount spent on college recruiting program for

each college employee hired
Average Relocation
Package
Relocation Hiring Costs / Hires Receiving

Relocation Package
Average relocation package provided during the survey

period
Cost to Onboard
Cost to Onboard / Total Hires
Average cost of bringing hires into the organization and

orienting them.
Average Sign-On Bonus
Total Sign-On Bonus Cost / New Hires

Receiving Sign-On Bonuses
Average sign-on bonus during the survey period
Average Management
Sign-On Bonus
Management Sign-On Bonus Cost /

Management New Hires Receiving SignOn Bonuses
Average Management sign-on bonus during the survey

period
Average Staff Sign-On

Bonus
Staff Sign-On Bonus Cost / Staff New

Hires Receiving Sign-On Bonuses
Average Staff sign-on bonus during the survey period
Time To Fill
Total Days to Fill / Total Hires
Average number of calendar days from the date a job

requisition is approved to the date an offer is accepted
by a hire.
External Time to Fill
External Days to Fill / External Hires
Average number of calendar days from the date an

external job requisition is approved to the date an offer is
accepted by an external hire.
Internal Time to Fill
Internal Days to Fill / Internal Hires

internal job requisition is approved to the date an offer is
accepted by an internal hire.
Exempt Time to Fill
Exempt Days to Fill / Exempt Hires

Exempt job requisition is approved to the date an offer is
accepted by an Exempt hire.
Nonexempt Time to Fill
Nonexempt Days to Fill / Nonexempt

Hires
Average number of calendar days from the date a

nonexempt job requisition is approved to the date an
offer is accepted by a Nonexempt hire.
*Time to Start
Total Days to Start / Total Hires
Average number of calendar days from the date a job

requisition is approved to the date a new hire begins
work.
External Time to Start
External Days to Start / External Hires

external job requisition is approved to the date an
external new hire begins work.
Internal Time to Start
Internal Days to Start / Internal Hires

internal job requisition is approved to the date an internal
new hire begins work.
Note:

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pwc
Staffing and Hiring

Metric Name
Formula
Description
Exempt Time to Start
Exempt Days to Start / Exempt Hires

Exempt job requisition is approved to the date an
Exempt new hire begins work.
Nonexempt Time to
Start
Nonexempt Days to Start / Nonexempt

Hires
Average number of calendar days from the date a

Nonexempt job requisition is approved to the date a
Nonexempt new hire begins work.
*Offer Acceptance Rate
Total Offers Accepted / Total Offers

Extended
Percent of offers extended to candidates that were

accepted.
External Offer
Acceptance Rate
Offers Accepted by External Hires /

External Offers Extended
Percent of offers made to external hires that were

accepted.
Requisitions Filled
Percent
Total Filled Requisitions / Total Existing

Requisitions
Percent of total requisitions that were filled during the

survey period.
Total Requisitions Per

Recruiter
Total Existing Requisitions / Recruiter FTE Average number of requisitions per Recruiter.
Filled Requisitions Per

Recruiter
Total Filled Requisitions / Recruiter FTE
Average number of filled requisitions per Recruiter.
HR Recruiter Costs Per

Requisition
HR Recruiter Hiring Costs / Total Existing

Requisitions
HR Recruiter cost per existing requisition.
HR Recruiter Costs Per

Filled Requisitions
HR Recruiter Hiring Costs / Total Filled

Requisitions
HR Recruiter costs per filled requisition.
Poor Quality Hire Rate
Total Separations with 0 to 3 Months of

Service / Total Hires
Percent of hires that voluntarily or involuntarily left the

organization during the first 3 months of employment.
New Hire Voluntary

Separation Rate
Total Voluntary Separations with 0 to 3

Months of Service / Total Hires
Percent of total hires that voluntarily left the organization

within their first 3 months of service during the survey
period.
New Hire Performance

Rate
Average Performance Rating of Regular

Headcount with 0 - 1 Year of Service /
Average Performance Rating of Regular
Headcount
Analyzes the relationship between new hire and overall

performance ratings.
Retention and Separations

Metric Name
Formula
Description
*Separation Rate
Total Separations / Regular Headcount
Percent of employees who voluntarily and involuntarily

Exempt Separation Rate
Total Exempt Separations / Regular

Exempt Headcount
Percent of Exempt employees that voluntarily and

involuntarily left the organization during the survey
period.
Nonexempt Separation
Rate
Total Nonexempt Separations / Regular

Nonexempt Headcount
Percent of Nonexempt employees that voluntarily and

involuntarily left the organization during the survey
period.
*Voluntary Separation
Rate
Total Voluntary Separations / Regular

Headcount
Percent of employees who voluntarily left the

organization during the survey period.
Exempt Voluntary
Separation Rate
Exempt Voluntary Separations / Regular

Exempt Headcount
Percent of Exempt employees that voluntarily left the

Note:

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Metric Name
Formula
Description
Nonexempt Voluntary
Separation Rate
Nonexempt Voluntary Separations /

Regular Nonexempt Headcount
Percent of Nonexempt employees that voluntarily left the

Executive Voluntary
Separation Rate
Executive Voluntary Separations /

Executive Headcount
Percent of Executives that voluntarily left the organization

Manager Voluntary
Separation Rate
Manager Voluntary Separations /

Manager Headcount
Percent of Managers that voluntarily left the organization

Professional Voluntary
Separation Rate
Professional Voluntary Separations /

Professional Headcount
Percent of Professional employees that voluntarily left

the organization during the survey period.
Sales Voluntary
Separation Rate
Sales Voluntary Separations / Sales

Headcount
Percent of Sales employees that voluntarily left the

Office & Clerical

Rate
Office & Clerical Voluntary Separations /

Office & Clerical Headcount
Percent of Office & Clerical employees that voluntarily

Operative Voluntary
Separation Rate
Operative Voluntary Separations /

Operative Headcount
Percent of Operative employees that voluntarily left the

Total Voluntary Separations with 0

*Percent of Total
to 1 year of service / Total Voluntary
Voluntary Turnover
Occurring in First Year of Separations
Service
Percent of total voluntary separations that occurred

during the first year of service.
*Percent of Total
Voluntary Turnover
Years of Service
Total Voluntary Separations with 1+

to 3 years of service / Total Voluntary
Separations

between 1-3 years of service.
*Percent of Total
Voluntary Turnover
Years of Service

to 5 years of service / Total Voluntary
Separations
Percentage of total voluntary separations that occurred

between 3-5 years of service.
*Percent of Total
Voluntary Turnover
Years of Service
Total Voluntary Separations with 5+ to

10 years of service / Total Voluntary
Separations

between the 5-10 years of service.
*Percent of Total
Voluntary Turnover
Occurring with 10+
Years of Service

years of service / Total Voluntary
Separations
Percent of total voluntary separations that occurred for

employee with 10+ years of service.
First Year of Service

Rate
Total Voluntary Separations with 0 to 1

year of service / Regular Headcount with
0 to 1 Year of Service
Percent of headcount with less than a year of service

that voluntarily left the organization during the survey
period.
One to Three Years

of Service Voluntary
Separation Rate
Total Voluntary Separations with 1+ to 3

Years of Service / (Regular Headcount
with 1 to 2 Years of Service+ Regular
Headcount with 2 to 3 Years of Service)
Percent of headcount with 1-3 years of service that

voluntarily left the organization during the survey period.
Three to Five Years

Separation Rate

5 years of service / Regular Headcount
with 3 to 5 Years of Service

Five to Ten Years of

Service Voluntary
Separation Rate

10 years of service / Regular Headcount
with 5 to 10 Years of Service

Note:

Saratoga
36
pwc

Metric Name
Formula
Description
More than Ten Years

Separation Rate

Years of Service / Regular Headcount
with 10+ Years of Service
Percent of headcount with 10+ years of service that

Cost of Turnover
Total Cost of Voluntary Turnover / Total

Average cost to the organization to replace each

employee who voluntarily separates.
Exempt Cost of Turnover Exempt Cost of Voluntary Turnover /

Exempt Voluntary Separations
Average cost to the organization to replace each Exempt

employee who voluntarily separates.
Nonexempt Cost of
Turnover
Nonexempt Cost of Voluntary Turnover /

Nonexempt Voluntary Separations
Average cost to the organization to replace each

Nonexempt employee who voluntarily separates.
Turnover Impact
Total Cost of Voluntary Turnover /

(Revenue - Operating Expense)
Analyzes the relationship between turnover and pre-tax

income.
*Involuntary Separation
Rate
Total Involuntary Separations / Regular

Headcount
Percent of employees that involuntarily left the

Exempt Involuntary
Separation Rate
Exempt Involuntary Separations / Regular Percent of Exempt employees that involuntarily left the
Exempt Headcount
Nonexempt Involuntary
Separation Rate
Nonexempt Involuntary Separations /

Regular Nonexempt Headcount
Percent of Nonexempt employees that involuntarily left

Executive Involuntary
Separation Rate
Executive Involuntary Separations /

Executive Headcount
Percent of Executives that involuntarily left the

Manager Involuntary
Separation Rate
Manager Involuntary Separations /

Manager Headcount
Percent of Managers that involuntarily left the

Professional Involuntary
Separation Rate
Professional Involuntary Separations /

Professional Headcount
Percent of Professional employees that involuntarily left

Sales Involuntary
Separation Rate
Sales Involuntary Separations / Sales

Headcount
Percent of Sales employees that involuntarily left the

Office & Clerical

Involuntary Separation
Rate
Office & Clerical Involuntary Separations / Percent of Office & Clerical employees that involuntarily
Office & Clerical Headcount
Operative Involuntary
Separation Rate
Operative Involuntary Separations /

Operative Headcount
Percent of Operative employees that involuntarily left the

Dismissal Involuntary
Separation Rate
Reason For Involuntary Separations Dismissed / Total Involuntary Separations
Percent of involuntary terminations that were dismissals.
Layoff Involuntary
Separation Rate
Reason For Involuntary Separations Layoff / Total Involuntary Separations
Percent of involuntary terminations that were layoffs.
High Performer
Separation Rate
Total High Performer Separations / High

Performer Headcount
Percent of high performer headcount that voluntarily

or involuntarily left the organization during the survey
period.
Low Performer
Separation Rate
Total Low Performer Separations / Low

Performer Headcount
Percent of low performer headcount that voluntarily

or involuntarily left the organization during the survey
period.
High Performer
Rate
Total High Performer Voluntary

Separations / High Performer Headcount
Percent of high performer headcount that voluntarily left

Low Performer
Involuntary Separation
Rate
Total Low Performer Involuntary

Separations / Low Performer Headcount
Percent of low performer headcount that involuntarily left

Note:

Saratoga
37
pwc

Metric Name
Formula
Description
*Absence Rate
Absence Days / FTE Workdays
Percent of FTE workdays missed due to illness.
Severance Pay Per

Employee
Severance Pay / Individuals Receiving

Severance Pay
Average severance pay given during the survey period

(excluding Executives receiving golden parachutes)
Note:

2006 PricewaterhouseCoopers LLP. All rights reserved. PricewaterhouseCoopers refers to the PricewaterhouseCoopers LLP (a Delaware limited
liability partnership) or, as the context requires, other member rms of PricewaterhouseCoopers International Limited, each of which is a separate and
independent legal entity. SF-SF-06-0438-A 01/06 MW
Saratoga
38
pwc

Saratoga 05-06 Metric List

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Saratoga

Revenue / Regular FTE

Revenue per FTE.

Revenue / Workforce On Payroll FTE

Revenue per FTE (including all regular employees and

Total Revenue Factor

Revenue / Total FTE

Revenue per FTE (including all contingent employees)

*New Product or Service New Products & Services Revenue/

Revenue generated per FTE from products and services

Operating Expense / Regular FTE

Operating expenses per FTE.

Operating Expense / Workforce On

Operating expenses per FTE (including all regular

Total Expense Factor

Operating Expense / Total FTE

Operating expenses per FTE (including all contingent

(Revenue - Operating Expense) / Regular

The pre-tax profit per FTE.

(Revenue - Operating Expense) /

Pre-tax profit per FTE (including all regular employees

Total Income Factor

(Revenue - Operating Expense) / Total

Pre-tax profit per FTE (including all contingent

Human Capital Value

(Revenue - (Operating Expense (Workforce On Payroll Compensation

Estimates profit an organization would generate if it

Total Human Capital

(Revenue - (Operating Expense - (Total

Estimates profit an organization would generate if it

(1) highlighted metrics are new Saratoga metrics

Organization and Operations

*Human Capital ROI

(Revenue - (Operating Expense (Workforce On Payroll Compensation

Total Human Capital ROI (Revenue - (Operating Expense - (Total

Pre-tax profit for each dollar invested in employee

Pre-tax profit for each dollar invested in employee pay

Workforce On Payroll Headcount /

Number of employees (including all regular employees

Total Manager Ratio

Total Headcount / Manager Headcount

Number of employees (including all contingent

Regular Headcount / Executive

The number of headcount employees supported by each

Workforce On Payroll Headcount /

The number of employees (including all regular

Total Executive Ratio

Total Headcount / Executive Headcount

The number of employees (including all contingent

Regular Headcount / Management

The number of employees each Manager and Executive

Workforce On Payroll Headcount /

Number of employees (including all regular employees

Total Management Ratio

Total Headcount / Management

Number of employees (including all contingent

Executive Headcount with Greater than 3

The percent of Executives with 3 or more years of

Total Tenure in Current Management

The average amount of time leadership (Managers and

Management Headcount Ready for

The percent of Management that has been identified as

Number of Succession Planning

Percent of key roles that have succession planning