Question

Topic: Advertising/PR

Is Salary Calculated Into Roi?

Posted by Anonymous on 6/26/2008 at 5:29 PM ET 50 Points
Is it standard practice to include a position's salary into the ROI? Currently, ROI is calculated on a per position (person) basis, rather on a project basis. ROI is calculated using a position's gross, base salary, plus the total operating budget of that position.

Therefore, all funds related to the position, including memberships, subscriptions, and other tools, are calculated into a complete ROI.

I have a small budget, but to have the 100% of the expenses calculated into an ROI covering 25% of what my job entails is quite odd, and was wondering if this was a standard practice.
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RESPONSES

  • Posted on 6/27/2008 at 10:22 AM Accepted
    I third that. ROI is the cost of the particular project or event (printing, mailing, food, speaker fees, etc.), not salary. Salary is overhead for the whole company.
  • Posted on 6/28/2008 at 6:16 AM Accepted
    Your mention of “project basis” directs me to our current standards as a consulting services company. Our resources (consultants/programmers) salary and operating costs are inputted based on projected or actual utility computed through man-hours and other costs devoted for the project. When these resources work on other projects, their man-hour utilities are charged to the particular projects. These are personnel directly related to projects.

    Other positions not directly related to projects or services are therefore considered overhead costs and are reckoned with in overall corporate figures.
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