Compensation Staffing Ratio

Metric Details & Benchmarking Report Download

KPI Benchmarks : Compensation Staffing Ratio

  • Benchmark Range
  • Benchmark Average
  • Benchmark Sample Size (n) 36

* Is High or Low Best: Higher is Better

Compensation Staffing Ratio

KPI Details

Compensation Staffing Ratio measures the number of company-wide employees supported by each individual compensation function employee. This metric speaks to the overall staffing level of the compensation function relative to the total number of employees working for the company. A lower than average value may be related to process inefficiencies, lack of automation and/or simple overstaffing within the compensation function. In some cases, many aspects of compensation management and analysis may be outsources to a third party vendor.

KPI Definition

The number of company-wide employees divided by the total number of employees working in the compensation department at the same point in time. Compensation department employees are typically responsible for developing (analyzing industry compensation levels, etc.), implementing and maintaining company compensation packages (periodic analysis, setup, changes, inquiries, etc.).

KPI Best Practices

  • Standardize routine procedures to reduce errors and minimize re-work
  • Cross-train employees to handle most/all tasks across Compensation function
  • Up-to-date work volume forecasting to optimize staffing levels
  • Review staffing levels at regular intervals to determine under or overstaffing

KPI Calculation Instructions Compensation Staffing Ratio?

Two values are used to calculate this KPI: (1) the total number of employees working for the company, across all functions within the supported regions, and (2) the number of employees working in the compensation function at the same point in time. Compensation employees should be counted as any employee whose core job function is related to developing the company’s compensation packages and pay structures, typically through analysis of market compensation levels and trends. Employees working within the payroll function should not be counted in the denominator for this calculation.

KPI Formula :

Total Number of Employees / Number of Compensation Employees

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