About five years ago, Wes Stoskopf, SHRM-SCP, realized he had a problem. As vice president of finance and human resources at Phillips Screw Co., a fastener system manufacturer based in Burlington, Mass., he knew he should have a solid understanding of the total cost of the company’s 80-person workforce.
But he didn’t.
“We were revising our pricing matrix within our manufacturing division and realized that we did not have a good handle on our total cost of workforce, which is a factor
in our pricing,” Stoskopf says.
His situation is not unique. While most HR professionals can tell you what their
company spends on salaries and benefits, fewer know the full amount invested in human
capital. Experts call it total cost of workforce (TCOW), a metric that may include a
DO YOU HAVE THE
TO FIGURE OUT YOUR
Here are 4 steps to calculating the total cost of
your organization’s workforce.
By Jennifer Arnold