Human Resource Costs

Human Resource Costs : 

Human Resource Costs

Remuneration : 

Remuneration Paid Remuneration Costs Basic Pay Dearness Allowance City Compensatory Allowance House Rent Allowance Conveyance Allowance Fringe Benefits Reimbursements Stock options Statutory Payments Provident Fund Pension fund Medical Benefits Payment for Holidays Payment for sickness Bonus Gratuity Scheme

Recruitment : 

Recruitment Cost Developing Job Specification Headhunting Advertising Job Opening Evaluation Interviewing Induction & Orientation Replacement Cost External Hiring Direct Recruitment Outsource Recruitment Contract Employees Consultant Internal Hiring Restructuring Relocation cost Promotion

Training Costs : 

Training Costs Cost for Induction period Cost of Remuneration for Trainee & Trainer Cost of Travel for Trainee & Trainer Cost of training materials Imputed cost of machines & equipments used during training Cost for development of training modules Cost of training evaluation Cost of material wastage during training Cost of production loss for trainee & trainer (in-house training)

Relocation Costs : 

Relocation Costs Cost related to disturbance allowance Cost of possible litigation Cost of Housing ( brokerage, agent facilities, schools) Cost of Travel Cost of Movers & Packers City Compensatory Allowance Cost additions due to change in remuneration

Separation Costs : 

Separation Costs Relocation induces Separation Separation- Organizational initiative or Individual employees reasons Separation Requires- Replacement Loss of Production Ex-gratia payments (if any) Redundancy benefits (if org. initiative) Immediate liquidation of fringe benefits, savings of Org. Replacement cost Training cost

Support Costs : 

Support Costs Statutory Support Services Medical welfare Canteens Safety Security Insurance Death Benefits Parking Space cost Voluntary Support Services Journal Club Membership Music at workplace Long services awards Suggestion Schemes Library Services Holiday Homes

Personnel Overhead Costs : 

Personnel Overhead Costs Personnel Record Keeping Maintaining HRIS Personnel decisions Maintaining Personnel department Outsourcing can be a cost saving option, however a detailed study of its merits & demerits is necessary.

Summary : 

Summary Develop worksheets on each cost element by grouping these under different cost heads. Decision on Cost control need to be weighed in terms of lost opportunity for employee motivation & consequent loss of productivity. To understand the trend of HR costs Ratio Analysis can be done from spread sheet. Ex : Ratios Average Wage and Benefit Cost per Employee Fixed Cost per Employee Fixed Costs (Excluding Labor) per Employee Increase in Wages and Salaries per Employee Office Supplies and Repairs per Employee Phone Costs per Employee Training Costs per Employee