Key Measures – Workforce size and cost – Orgvue Knowledge Base

This article provides example key measures for monitoring and managing the size and cost of the workforce. These are intended to inform considerations and will likely need to be adapted to meet the specific requirements of your organization.

With Orgvue, you can always get beyond overall, company-wide data to visualize differences across the organization subgroups to identify where key measures are diverging from established targets.

Workforce Size

Total Headcount

The count of people employed by the organization. Often reported as ‘Actual Headcount’
Business question addressed: What is the actual size of the workforce based on current, in-situ employees?

Total FTE

The sum of Full Time Equivalents. Often reported as ‘Actual FTE’
Business question addressed: What is the actual size of the workforce based on current, in-situ employees taking account of contracted working hours?

Total Positions

The total number of positions in the organization, including both filled and unfilled positions. Typically reported as Total Positions = Actual Headcount + Unfilled Positions.
Business question addressed: What is the full potential size of the workforce?

Number of Joiners, Movers and Leavers

The number of people who have joined the organization, moved to a different position, or left the organization in a reporting period.
Business question addressed: What are the underlying reasons for changes in the size (and cost) of the workforce over time?

Future Workforce Size

The planned number of positions in the organization at each future reporting period, taking planned effective dates for positions opening and closing.
Business question addressed: Is the future size of the workforce in line with latest business planning assumptions? What is the pipeline and volume of hiring activity planned for coming months/ quarters?

Age of Unfilled Positions

The number of Unfilled Positions which have remained unfilled beyond a threshold duration. Additionally, the number of Unfilled Positions in each duration category is typically reported.
Business question addressed: Are there long-term unfilled positions which could be repurposed to meet business priorities?

Workforce Cost

Total Workforce Cost

The sum of employees’ compensation costs. Often reported as ‘Actual Cost’
Business question addressed: What is the actual cost of the workforce based on current, in-situ employees?

Fully Resourced Workforce Cost

The full potential cost of the organization, including both filled and unfilled positions. Typically reported as Fully Resourced Cost = Actual Cost + Cost of Unfilled Positions.
Business question addressed: What is the full potential cost of the workforce? Would the workforce cost base be sustainable if all unfilled positions were resourced?

Future Workforce Cost

The Fully-Resources Cost of the workforce at each future reporting period, taking account of planned dates for positions opening, changing and closing.
Business question addressed: Is the future cost of the workforce in line with latest business planning assumptions? Is the future workforce cost base sustainable?

Cost of Aged Open Positions

The cost of Unfilled Positions which have remained unfilled beyond a threshold duration. Additionally, the cost of Unfilled Positions in each duration category is typically reported.
Business question addressed: Are there costs tied-up with long-term unfilled positions which could be repurposed to meet business priorities?

Revenue per FTE

Company (or individual business unit) divided by Total FTE.
Business question addressed: Is the size of the organization appropriate for our business?

Workforce Costs as a Proportion of Revenue

Company (or individual business unit) divided by Total FTE. Typically used for reporting in-period actuals, supplemented by forecasts, applying Future Planned Cost and Revenue projections.
Business question addressed: Is the workforce cost base in line with current and forecast business performance?

Beyond core workforce size and cost measures additional measures relating to the mix of the workforce, reward consistency and recruitment are often observed:

Contingent Employees

Number (and proportion) of Contingent Employees

The number of contingent employees – contractors, consultants and other indirectly employed employees – often expressed as a percentage of the total workforce
Business question addressed: What is the total size of the workforce including indirect employees? Does the organization face risk through a high proportion of indirect employees?

Cost of Contingent Employees

The employment costs of contingent employees – contractors, consultants and other indirectly employed employees, often expressed as a percentage of total workforce costs.
Business question addressed: What is the total size of the workforce including indirect employees? Are there high costs of employment associated with indirect employees?

Reward Consistency

Average Compensation by Grade

The mean average compensation value for employees in the same grade band.
Business question addressed: Are reward frameworks being applied consistently?

Reward Alignment

The number/ proportion of employees receiving compensation outside targets for the position/ role being performed.
Business question addressed: Are reward frameworks being applied consistently? Do we face exposure to cost inflation risks?

Workforce Ratios and Splits

Key ratios and subgroup proportions relevant for tracking strategic priorities. For example:

% Split of employees in low-cost / high-cost geographic locations
% Split of employees in central functions / operational business units
% of employees in customer-facing positions

Talent Acquisition

Hiring Status of Unfilled Positions

The number of Unfilled Positions in each hiring status category, for example, ‘On-Hold, Active, and Recruited’
Business question addressed: Will the forecast future workforce size and cost be realized given the recruitment status of Unfilled Positions?

Average Time-to-Hire/ Time-to-Fill

The average duration between a position entering recruitment and being hired/ filled.
Business question addressed: Does hiring activity for specific positions or roles need to be prioritized to deliver planned outcomes?

Recruitment Misfire Rate/ New Hire Turnover Rate

The number of employees leaving the organization within X days or X months of their start date. Ninety days often referenced, with data commonly split by voluntary and involuntary leavers, and different recruitment channels.
Business question addressed: Are good quality hiring decisions being made? Are there fundamental issues in talent attraction and acquisition processes.

See other key measures: