Before you complete your pay type mapping it’s recommended to review the below table to better understand the People Analytics pay types available and how they map to total cost of workforce.
People Analytics Pay Type | Description | TCOW Mapping (i.e. where a pay type/element rolls up into the TCOW Model) |
Agency Costs | Agency costs are the monies paid to recruiting agencies for the sourcing or hiring activities they perform on behalf of the organisation. | Agency Costs > Workforce Events > Workforce Overhead > TCOW |
Base Pay | Base pay is the regular compensation provided directly to employees for their work contribution to the organisation. Base pay describes the most common form of compensation paid to employees. Use this metric to quickly see how much your costs are for employee base pay. Examples of base pay include:
| Base Pay > Direct Compensation > Total Rewards > Labour Costs > TCOW |
Bonus | Bonus is provided as a reward for good performance. | Variable Pay > Direct Compensation > Total Rewards > Labour Costs > TCOW |
Commission | Commissions are a form of compensation where the amount paid is directly related to the achievement of set targets. For example, commissions are common in sales roles where a percentage of total sales is awarded as compensation for the work done. Commission costs are highly varied, and costs are only incurred for the results achieved. | Variable Pay > Direct Compensation > Total Rewards > Labour Costs > TCOW |
Contingent Workforce Costs | Contingent workforce costs cover the work of people who are not classified as employees and who do work on behalf of the organisation. These people are not on payroll and do not hold employment contracts directly with the organisation. These costs are often incurred through a 3rd party such as a staffing agency and cover work done by contract staff, temporary / agency staff, consultants etc. | Contingent Workforce Costs > Employer Costs for Labour > Labour Costs > TCOW |
Employer Insurance And Taxes | Employer insurance and taxes are workforce costs related to taxes and insurance premiums that must be paid based on the workforce employed (e.g. unemployment insurance, payroll taxes, workers compensation insurance etc.). | Employer Insurance & Taxes > Employer Costs for Labour > Labour Costs > TCOW |
Employer Pension | Benefits relating to employer pension contributions. | Employer Pension > Benefits > Total Rewards > Labour Costs > TCOW |
Health Benefits | Health benefits are the per employee costs directly associated with providing medical benefit cover to employees and their families. This includes all of the cost items related to providing insurance cover, either directly or indirectly, for medical events that happen to an employee. Use this metric to quickly see how much your costs are for employee health benefits. Examples of health benefits include:
| Health Benefits > Benefits > Total Rewards > Labour Costs > TCOW |
Long Term Incentive | Long-term incentive pay is the current cash value of any long-term incentives that have been granted to employees, and for which the employee is currently eligible. These are workforce costs related to incentives which payout over a time frame of longer than one year. This measure deals with the actual costs, not the calculated present value or projected future value of an item such as a share option or RSU. This measure represents only the monetary or equivalent value that is paid to or budgeted for an employee based on their long-term incentive eligibility. Use this metric to quickly see how much your costs are for employee long-term incentive pay. Examples of long-term incentives include:
| Supplemental Pay > Direct Compensation > Total Rewards > Labour Costs > TCOW |
Other Supplemental Pay | Other supplemental pay are other unclassified compensation costs related to supplemental pay rewards. | Supplemental Pay > Direct Compensation > Total Rewards > Labour Costs > TCOW |
Other Variable Pay | Other variable pay are unclassified variable compensation costs relating to a non-fixed monetary rewards. (e.g. spot bonuses, etc.). | Variable Pay > Direct Compensation > Total Rewards > Labour Costs > TCOW |
Other Workforce Events | Other workforce events costs are unclassified workforce overhead costs associated with any events that impact employees (e.g. office relocation, employment related M&A costs, etc.). | Other Workforce Events > Workforce Overhead > TCOW |
Overtime Pay | Overtime pay are workforce costs for that are paid for hours worked beyond the contracted working hours. Overtime costs will typically recognise these additional hours at an increased hourly rate e.g. 1.5x etc based on agreed overtime rules. There can be many different types of overtime pay and pay rates. Not all employees are eligible for overtime. | Supplemental Pay > Direct Compensation > Total Rewards > Labour Costs > TCOW |
Pay for Time Not Worked | Pay for time not worked are the workforce costs associated with time off for which the employer continues to pay the employee, or the monetary value which is provided in lieu of time off. Use this metric to quickly see how much your costs are for employee pay for time not worked. Examples of pay for time not worked include:
| Pay for Time not Worked > Benefits > Total Rewards > Labour Costs > TCOW |
Premium Pay | Premium pay are supplemental workforce costs for pay for employees who are eligible for a premium over and above the standard pay agreement. Premium pay can be awarded to workers who have achieved specialist skill sets or who are working in particular situations which require a temporary or conditional increase in pay. | Supplemental Pay > Direct Compensation > Total Rewards > Labour Costs > TCOW |
Recognition Overhead | Recognition program costs are workforce overhead costs associated with managing and/or outsourcing costs for internal recognition programs, not including supplemental pay (e.g. processing charges for rewards, vendor premiums, etc.). | Recognition Overhead > Workforce Events > Workforce Overhead > TCOW |
Recognition Rewards | Recognition rewards are variable workforce costs associated with organisational recognition programs where employees will receive monetary rewards in recognition of specific achievements e.g. a gift card for £50 based on the amount of peer recognition received in a given period. | Variable Pay > Direct Compensation > Total Rewards > Labour Costs > TCOW |
Referral Cost | Referral costs are workforce costs associated with payments to employees for referring a successful candidate. | Referral Cost > Workforce Events -> Workforce Overhead > TCOW |
Relocation Cost | Relocation costs are the hiring costs associated with moving employees from their current location to the location where they will be working. This can be attributed to new hires or employees who must change locations. | Relocation Cost > Workforce Events -> Workforce Overhead > TCOW |
Workforce Allocations | Workforce allocations are workforce overhead costs for employee enablement items (e.g. IT tools and support expenses, HR programs and support, expenses, etc.). | Workforce Allocations > Workforce Overhead > TCOW |