salary n’ wage mngmt

Institutional Approach, Technical Approach, Accounting & Budget Approach

SALARY AND WAGE COST EVALUATION

Institutional Approach

Looks at employees in terms of their job relationships and employment status.

Technical Approach

Focuses on the work tasks and how efficiently they are performed

Accounting & Budget Approach

Examines the actual costs of labor in delivering the service, like wages and benefits.

1. Recruitment Costs

2. Training Costs

3. Operational Periods

4. Separation Costs

labor costs can be broken down into four main stages:

Recruitment Costs

Expenses related to hiring, like advertising job openings and screening candidates.

Training Costs

The costs of helping new employees learn their roles,

such as training programs or courses.

Operational Periods

The time when employees are actively doing their jobs and contributing to the organization's work

Separation Costs

Costs involved when employees leave, such as

severance pay, exit interviews, and administrative expenses.

Technical evaluation of labor cost

It seeks to identify and assign labor costs to the production activities that actually generate the expenses.

Technical evaluation of labor cost

In the laboratory this means focusing on the analytical process from the time a test is requested to the release of the final result.

Preanalytical Time

The time involve in collecting the specimen and preparing

samples and instruments.

Analytical Time

The time which the test is actually performed and the results are calculated.

Postanalytical Time

The time in which the report is made and routine maintenance is performed.

1. Total (Paid) Hours

2. Productive (Worked) Hour

3. Nonproductive (Benefit) Hours

Accounting and budgeting labor analysis

Total (Paid) Hours

The total number of hours for

which an employee is paid; includes actual time spent

in the laboratory as well as benefit hours paid

(productive plus nonproductive).

Productive (Worked) Hours

The actual hours worked, including overtime.

Nonproductive (Benefit) Hours

Hours for which the employee is compensated but not available for work.

Productivity = Workload Units/ Labor Units

What is the formula to measure productivity

Workload units

These are tasks or outputs, like laboratory tests or billable procedures.

Labor Units

This represents the time spent on work, usually measured in hours or minutes. For salaried employees, it's often based on a standard 40-hour workweek.

Billable Procedure

A test for which the laboratory may issue a charge.