Total Compensation Spend Rate Calculator is an excel template with predefined formulas to calculate the percentage of Compensation Spend against the operating costs of an organization.
Enter only 3 details and it will calculate the Compensation Spend Rate for you. Before we proceed to the template contents, we need to first understand the Total Compensation Spend Rate.
This template can be useful to HR Assistants, HR professionals, Company Managers to design their strategies. It is also helpful to Accountants for budgeting purpose.
What is the Total Compensation Spend Rate?
Compensation is the total of cash and non-cash payments made to an employee against their work.
The percentage of costs spent on employee compensation which includes salaries, overtime pay, benefits, incentives, bonuses etc. against the company’s total operating costs.
TCS rate (Total Compensation Spend Rate) provides insight into the human capital costs. Evaluating the fixed and variable compensation against the total compensation helps us in preparation/estimation of the budget, Planning recruitment, defining/designing/amending your compensation strategies.
Formula To Calculate Total Compensation Spend Rate (TCS Rate)
The formula to calculate the Total Compensation Spend Rate is:
Direct Compensation = Basic Pay + Differential Pay + Short and Long-Term Incentive Pay + Cash Rewards + Bonus
Indirect Compensation = Benefits + Disability + Medical/Dental/Life Insurance + Medial Reimbursements + Leave Pay + Flexible Benefits
Total Operating Spend = Fixed Operating Costs + Variable Operating Costs
Total Compensation Spend Rate Calculator Excel Template
We have created a simple TCS Rate Calculator excel template with predefined formulas. You can calculate the TCS rate in two ways with this template.
One is by entering directly the figures of operating cost, direct compensation, and indirect compensation. Second by entering detailed amounts pertaining to each head.
Let us understand how to use this Calculator in details.
How to Use Total Compensation Spend Rate Calculator?
This template consists of 2 sections:
- TCR Rate Direct Calculation
- TCS Rate Detailed Calculation
1. TCS Rate Direct Calculation
You can use this section if you have the totals of required fields in hand. Enter the totals of Direct Compensation, Indirect Compensation, and Total Operating Expenses.
Applying the above-mentioned formula, it will automatically calculate the TCS Rate for you.
2. TCR Rate Detailed Calculation
In this section, you need to enter amounts one by one and the final total of each head will be displayed in the summary section.
Under the Direct Compensation Section, you need to enter the following details:
Short And Long-Term Incentive Pay
Similarly, under the Indirect Compensation Section, you need to enter the following details:
Under Operating Spend you need to enter the fixed and variable operating cost.
The summary section displays the totals of direct compensation, indirect compensation, and Operating Spend.
In addition to the above, you can also download Excel templates in other categories like HR and Payroll, Financial Analysis, Financial Statements, etc
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