KPI Benchmarks : Retail Branch Span of Control
- Benchmark Range
- Benchmark Average 6.5%
- Benchmark Sample Size (n) 24
* Is High or Low Best: Higher is Better
KPI Details : Retail Branch Span of Control
Retail Branch Span of Control, or Management Span, measures the average number of retail branch employees reporting to each retail branch manager at a certain point in time (i.e., direct reports per retail branch manager/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.
KPI Best Practices : Retail Branch Span of Control
- Accurate work and budget forecasting practices to appropriately staff branch locations
- Adequate vetting of employees to hire self-motivated workers who require less supervision
- Designate certain employees as team leaders and delegate tasks when possible
KPI Calculation Instructions Retail Branch Span of Control?
Two values are used to calculate this KPI: (1) the sum of direct reports (i.e., employees reporting directly up to any given retail branch manager) across all retail branch positions, and (2) the number of retail branch management positions within the bank 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.
KPI Formula :
Sum of Direct Reports for All Managers / Number of Managers