Human Resources (HR) Staffing Ratio
This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Human Resources (HR) Staffing Ratio. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.
What is Human Resources (HR) Staffing Ratio?
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.
Why should Human Resources (HR) Staffing Ratio be measured?
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.
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