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PARMA Workforce Economics

Payroll 59%→45-47% of revenue, utilization to 90-92%, EEI (efficiency index), 900+ person-months/year idle → ≤7%, 80 KPIs

At a glance
Payroll/revenue: 59% → 45-47%

CTO

6 мес · 500+ staff scope

  • TFS
  • KPI Dashboard
  • Time Tracking
  • P&L Model
  • BI Analytics
  • Jira

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Problem

What doesn't work

Payroll was the largest expense (~59% of revenue), yet 2/3 of employees were underloaded by 30%+. Idle time equaled 900+ person-months/year. Time entries didn't reflect real workload: actual idle time was masked by phantom tasks. Raises were tenure-based, not performance-based. Managers bore no responsibility for department payroll economics. No link between tasks, results, and compensation.

Solution

Architectural approach

Self-regulating workforce economics: (1) bi-weekly load plans per employee, (2) automated idle detection dashboard, (3) effort standards for typical tasks, (4) Employee Efficiency Index (EEI): speed × quality × utilization × development contribution (scale: <0.9 — improvement zone, 0.9-1.1 — target, >1.1 — bonus), (5) per-employee P&L model, (6) new compensation model — raises only for commitments or measurable impact.

My role & contribution

CTO

Author of the workforce efficiency section in the production strategy. Developed the EEI formula (speed × quality × utilization × development contribution) and application scale. Designed the 80-metric KPI tree across 5 domains. Implemented per-employee P&L model and idle time dashboard.

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Serbia-based · CET/CEST timezone · EU-aligned working hours · International contracts experience