Benefit Cost per Employee
Monitoring the cost of benefits is an important aspect of remuneration monitoring and also provides of interpreting the value offered by a benefit provider.
The total cost of benefits should be calculated of a period which may match a financial year or the duration of a contract. The headcount used could be either the headcount on the last day of the contract or be based on an average headcount over the period.
The formula used in the calculation is:
Benefit Cost per Employee = Total Benefit Cost / Total Headcount