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Overtime payout ratio


It measures the ratio between to the value spent on overtime hours against the total compensation expense.



Calculation steps:

  1. choose time frame
  2. identify the employees that worked overtime
  3. correlate each employee with the number of hours of worked overtime
  4. calculate the amount payed for the overtime hours to each employee
  5. add the values for overtime pay in a total amount
  6. identify the value spent on total compensation
  7. divide the total value spent on overtime hours to total compensation expense value

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