Compare labor economics across locations while separating absolute payroll scale from revenue, operating-hour, and output-normalized performance.
About this analysis
A higher-cost location is not automatically less efficient. The comparison shows total loaded labor cost alongside multiple normalization bases before identifying relative cost intensity.
Learn more about our Labor Cost Optimization practice.
Enter comparable annual figures. Revenue, operating hours, and output are retained separately so the same portfolio can be viewed through different normalization bases.
Portfolio loaded labor cost
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Loaded payroll plus overtime / contractor cost
Labor cost % of revenue
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Portfolio labor cost divided by entered revenue
Labor cost per operating hour
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Normalizes for operating-time scale
Labor cost per output unit
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Normalizes for entered production or service volume
The selected basis determines the relative variance shown below. Portfolio averages are calculated from aggregate numerator and denominator values rather than averaging site percentages.
ILLUSTRATIVE CALCULATION RECORD — MULTI-SITE LABOR COST COMPARISON Site A: 50 FTE | $60,000 average base pay | 30% burden | $150,000 overtime/contractor | $8,000,000 revenue | 2,500 operating hours | 100,000 output units Site B: 40 FTE | $65,000 average base pay | 30% burden | $100,000 overtime/contractor | $7,000,000 revenue | 2,500 operating hours | 90,000 output units Site C: 60 FTE | $55,000 average base pay | 30% burden | $250,000 overtime/contractor | $9,000,000 revenue | 2,500 operating hours | 120,000 output units ILLUSTRATIVE RESULTS Site A total loaded labor cost: $4,050,000 Site B total loaded labor cost: $3,480,000 Site C total loaded labor cost: $4,540,000 Portfolio loaded labor cost: $12,070,000 Portfolio labor cost as % of revenue: 50.3% Portfolio labor cost per FTE: $80,467 Portfolio labor cost per operating hour: $1,609 Portfolio labor cost per output unit: $38.94 JavaScript replaces this illustrative record with the visitor's current assumptions.
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