The depth of analysis of manpower could depend upon the proportion of manpower cost to the total cost of product or service.
The performance criteria for this area will mainly be related to the costs and efficiency or productivity.
The costs may be categorized into the cost of recruitment, cost of maintaining the manpower and the cost of separations.
Recruitments costs may include position advertisements, commission paid to recruitment agencies, participation in job fairs or campus recruitment etc.
The maintenance costs may be the training & development costs, facilities provided over & above the monetary benefits etc.
The separation costs would mostly be implicit costs.
These costs as a percentage of the total salaries and wages would provide an insight into the quality of manpower management.
These costs could be further broken up as per the hierarchies of people.
The time taken to recruit important positions may affect the performance adversely.
The factor returns from the manpower is in terms of growth in production and productivity, enhancement of skills and knowledge of the organization.
The auditor should analyse the figures of manpower productivity, idle time, overtime worked, absenteeism etc.
These factors could be compared with the respective outputs such as increased production, increased sales etc.
The criteria such as sales per person achieved, production per man hour etc. will add value to the Report on Performance Analysis.