"Benchmarking for Functional HR Metrics"
HR Focus
November 2006, pp. 1, 13-15
The Saratoga Institute has compiled a set of leading metrics for the assessment of HR departments. Data has been collected from a number of companies that use these metrics, and the article includes benchmark numbers for the 25th, 50th, and 75th percentiles on each metrics. The following is a summary of the metrics, showing the 50th percentile score.
| Metric | Formula | 50th Percentile Score |
|---|---|---|
| HR headcount ratio | Regular Headcount/Direct HR Headcount | 93 |
| HR headcount investment factor | Direct HR Costs/Regular headcount | $1,409 |
| HR revenue % | Direct HR Costs/Revenue | 0.46% |
| HR expense % | Direct HR Costs/Operating expense | 0.56 |
| HR leadership & strategy FTE | HR Leadership & Strategy FTE/Direct HR FTE | 6.8 |
| Benefits FTE % | Benefits FTE/Direct HR FTE | 10.5 |
| Compensation FTE % | Compensation FTE/Direct HR FTE | 6.7 |
| Recruiting & staffing FTE% | Recruiting & Staffing FTE/Direct HR FTE | 19.8 |
| HR talent management FTE% | HR talent management FTE/Direct HR FTE | 3.1 |
| Employee & labor relations FTE % | Employee & labor relations FTE/Direct HR FTE | 8.1 |
| Workforce mobility services FTE % | Workforce Mobility Services FTE/ Direct HR FTE | 0.7 |
| HRIT FTE % | HRIT FTE/Direct HR FTE | 6.3 |
| Vendor management FTE % | Vendor management FTE/Direct HR FTE | 0.0 |
| Employee records & administration FTE % | Employee records & administration FTE/Direct HR FTE | 8.1 |
| Communications FTE | Communications FTE/Direct HR FTE | 1.0 |
| HR customer service center FTE | HR customer service center/Direct HR FTE | 6.2 |
| Business partners FTE | Business Partners FTE/Direct HR FTE | 3.7 |
| HR generalist FTE | HR generalist FTE/Direct HR FTE | 20.4 |
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