* Is High or Low Best: Higher is Better
Human Resources (HR) Staffing Ratio measures the number of company-wide employees supported by each individual HR function employee. This metric speaks to the overall staffing level of the HR 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 HR function. While a high value for this metric is preferred (i.e., each HR employee supports many company-wide staff members), this should also be balanced with the level of service being provided to the employees of the company, as well as the effectiveness of recruiting, hiring and training processes. The quality of employee training, talent attraction and development, benefits/compensations programs and employee relations practices can impact employee retention (i.e., turnover rate), work quality and productivity. Although HR is a considered cost center, or overhead function, (i.e., a non-revenue generating function), through high quality talent attraction and development, it can provide a considerable completive advantage.
The number of company-wide employees divided by the total number of Human Resources (HR) employees working for the company at the same point in time. HR Department employees are typically responsible for recruiting, hiring, employee relations, compensation and benefits management/administration, payroll processing, training and development, and strategic human capital management operations.
Two values are used to calculate this KPI: (1) the total number of Human Resources (HR) Department employees, and (2) the total number of company-wide employees working for the organization at the same point in time. HR employees should include all employees within the company that are dedicated to HR operations, including recruiting, hiring, training and development, employee relations, payroll and human capital management team members at all levels of the organization. When calculating this value for a calendar year (or month, quarter, etc.) the average number of employees during that time period may be used for this calculation (i.e., the number of employees at start of period, plus the number at the end of the period, divided by 2).
Total Number of Employees / Number of HR Department Employees
The total expense incurred by the Human Resources (HR) Department expense divided by the total number of employees working for the organization over the same period of time. Total HR expense...
KPI Type : Cost
Formula : Total Human Resources Expense / Total Number of Employees
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