Average Payroll Cost Per Employee is a business metric used to measure the total payroll cost per employee in a given period. It gives employers an idea of how much they are spending on their team members and can help them better manage their finances. The calculation involves dividing the total payroll costs by the number of employees in any given period and is typically expressed in dollars. By using this metric, employers can understand the cost of their workforce and make more informed decisions about wages and other expenses. Knowing your average payroll cost per employee helps ensure you’re staying within your budget while providing your staff with the appropriate wages and benefits.