“Compensation Costs and the Bottom Line” -The Business Impact of Your Compensation Strategy
What information do you need to know to work with the CFO or finance department to determine appropriate labor cost estimates? Labor costs make up 30 to 70% of most company’s expenses.  Yet this line item often gets less attention and monitoring than it deserves.  Strategic business partners are able to quantify the impact of pay on business operations through organizational metrics and reporting.  Many times this information comes through the finance department and doesn’t include employee or departmental comparisons.  We’ll be reviewing sample reports on comparatios, the differences between cost of living and cost of labor, historical pay increase tables and projections for the future, promotions, hiring rates, and the value of consistently tracking and reporting this information to your executive team.

In this 1 hour presentation, you will:

• Identify the key business drivers for your company
• Understand the relative cost of labor in your industry
• How to budget for increases, salary surveys, and overall labor costs
• Identify the value of historical data for making business decisions about total rewards

Participants need to come to the program with and understanding of the percentage of Operating Costs that are made up by Labor Costs.  For example, if your Operating Costs are $10mil, and Labor Costs are $6Mil, then the percentage of labor costs to operating costs is 60%.  You will need this information for an exercise. Catherine will teach you the critical compensation components that impact the bottom line of the business and will position you as a “true business partner” at your organization.

HRCI: 1 Strategic Credit
Registration information can be found at http://schra.net/