Skip to main content

​
Labor Cost Metrics

​
Total Labor Cost

Definition: The estimated total cost of all labor in a period, including regular wages, overtime premiums, and agency spend. Formula: 
Total Labor Cost = Regular Labor Cost + Overtime Cost + Agency Cost
Notes:
  • Senzo estimates labor cost from hours and benchmark compensation rates if actual cost data is not uploaded
  • For precise figures, provide actual payroll cost data in your upload
  • Monthly and Annual views are toggled in the Labor Cost Analytics section
Displayed in: Overview (summary), Cost Analytics — Labor Cost tab

​
Cost per FTE

Definition: Average labor cost per filled FTE for the period. Formula: 
Cost per FTE = Total Labor Cost ÷ Filled FTE
Monthly vs Annual:
  • Monthly Cost per FTE: total monthly cost ÷ FTE
  • Annual Cost per FTE: annualized cost ÷ FTE (equivalent to annual salary)
Displayed in: Cost Analytics — Labor Cost tab

​
Overtime Cost

Definition: The estimated cost of all overtime hours at the applicable premium rate. Formula: 
OT Cost = overtime_hours × hourly_rate × overtime_premium_multiplier
Default premium: 1.5×. Adjustable in Cost Analytics settings. As % of labor cost: 
OT Cost % = (OT Cost ÷ Total Labor Cost) × 100
Benchmark: OT cost above 12% of total labor cost warrants operational review. Displayed in: Cost Analytics — Labor Cost tab, Overview summary card

​
Agency Cost

Definition: The estimated cost of agency or temporary staff hours. Formula: 
Agency Cost = agency_hours × agency_hourly_rate
Agency rates are typically 40–80% above equivalent employed staff rates. Default agency premium: 50% above base rate. Adjustable in Cost Analytics settings. As % of labor cost: 
Agency Cost % = (Agency Cost ÷ Total Labor Cost) × 100
Displayed in: Cost Analytics — Labor Cost tab, Overview summary card

​
Premium Labor Spend

Definition: The combined cost of overtime and agency — all labor delivered above base employed rates. Formula: 
Premium Labor Spend = OT Cost + Agency Cost
FTE Equivalent of Premium Spend: 
Premium FTE Equivalent = Premium Labor Spend ÷ Cost per FTE
This is the insight displayed in the Labor Cost Analytics card: “OT and agency spend this month ($X) is equivalent to approximately Y FTE at average cost.” This number answers a powerful governance question: could we afford to hire the FTE we’re replacing with premium labor? Displayed in: Cost Analytics — Labor Cost tab, Overview summary card

​
Cost Breakdown bar

The cost breakdown bar in Labor Cost Analytics shows the proportion of total labor cost attributable to:
  • Regular (teal) — base employed labor
  • Overtime (amber) — premium overtime hours
  • Agency (indigo) — temporary and agency staff

​
Notes on cost data reliability

Labor cost figures in Senzo are estimates unless actual payroll data is uploaded. Estimate accuracy depends on:
  • Compensation benchmark accuracy — Senzo uses collective agreement rates as defaults; actual compensation varies by seniority and step
  • Benefits not included — Senzo estimates wages only; employer benefits costs (typically 20–30% of wages) are not included unless provided
  • Geographic variation — rates are Canadian national benchmarks; rural and remote premiums are not reflected in base calculations
For governance-level reporting, supplement Senzo’s estimates with actual payroll data from your finance system.