* Is High or Low Best: Higher is Better
Human Resources (HR) Span of Control, or Management Span, measures the average number of employees that report directly to each individual HR manager, or director. Span of Control depends highly on the organizational structure of the business. A highly structured hierarchical organization will typically have a lower number of employees reporting to each manager, while a flat organization will typically have many employees reporting to each individual manager. While a high Span of Control (i.e., more direct reports per manager) can keep personnel costs down, it is important to weigh any cost savings against potential trade-offs related to talent development, front-line employee oversight/productivity, and the company's overall strategy in regards to internal promotions and growth. A Span of Control between 6 and 15 is typically desired. When spans rise above this level, managers may be spread too thin; spans below this value may indicate that there are redundant or unnecessary management positions.
The average number of human resources (HR) employees reporting to each HR Department manager at a certain point in time (i.e., direct reports per HR manager/director).
Two values are used to calculate this KPI: (1) the sum of direct reports (i.e., employees reporting directly up to any given HR manager) across all HR management positions, and (2) the number of HR management positions within the group being examined. A direct report should be considered any employee that regularly reports to a given manager within the organization (i.e., they sit below them on the organization chart). A manager should be considered any employee with a manager or director job title and pay grade, regardless of whether or not they have employees reporting to them.
Sum of Direct Reports for All Managers / Number of Managers
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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