Understanding Manpower Costing Components and Calculation Methods

Please let me know what components we need to consider when doing manpower costing.

Regards,
Poornima

Major components of Manpower Costing are:

1. Wage Bill
2. Recruitment Costs
3. Training Costs
4. Employee Welfare Costs - Canteen, Loans, Picnics, Off-sites, etc.
5. Increment/Performance Linked Incentive Costs
6. Employee Overheads Costs - Grade-wise eligibilities like Travel, Conveyance, Reimb, etc.
7. Employee Benefits Costs - Wedding gifts, Anniversary gifts, Long Service Awards, Rewards and Recognition Costs, etc.

Cheers,
Kanishka

All the above (and some more too) are calculated and then finally divided by the total headcount of the organization for the year. This gives us the organization's Manpower Cost per employee.

For an Individual Cost to the Company, the TOTAL COMPENSATION PHILOSOPHY states that all these things need to be added to get to the TCTC of an individual.

Can anybody help me with how to calculate the manpower costing of a particular company for benchmarking with other companies?