HR Expense per Employee
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1 OpsDog KPI Reports Benchmarks, Definition & Measurement Details SAMPLE CONTENT & DATA 2017 Edition
2 Definition & Measurement Details What is? 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 includes labor, technology and other overhead costs related to recruiting, hiring, employee relations, compensation and benefits management/administration, payroll processing, training and development, and strategic human capital management operations. Why should this KPI be measured? Human Resources (HR) Expense per Employee measures HR spending on a per employee basis (i.e., average cost per employee). A relatively high value for this metric (i.e., higher than the average or median benchmark) may be related to ineffective recruiting processes, high employee turnover rates (which, in turn, increase recruiting, hiring and training costs), highly manual HR processes, and/or a general lack of discipline and productivity within HR operations. While a relatively low value for this metric is preferred, this should also be balanced with the risk inherent in managing human capital, the effectiveness of employee training programs, and the overall level of service being provided to the company s employees. Poor HR performance may shed negative light on the company s human capital management practices, and can adversely impact employee satisfaction and turnover rates. How is this KPI calculated? Two values are used to calculate this KPI: (1) total Human Resources (HR) expense incurred, and (2) the total number of employees working for the company over the same time period. Total HR expense should include labor, technology (e.g., HR management systems, etc.) and other overhead costs related to recruiting, hiring, employee relations, compensation and benefits management/administration, payroll ABRIDGED CONTENT processing, training and development, and strategic human capital management operations. When measuring this value for an extended Purchase to View Full Definition & Measurement Details! time period (quarterly or annually), use the average number of employees working for the company during that time period (i.e., number of employees at end of each month divided by the number of months in the measurement period). Related KPIs Turnover Rate, Cost per Hire, HR Staffing Ratio Formula 1
3 Benchmarks & Characteristics of High Performers High Performers SAMPLE CONTENT Low Performers Avg () Purchase to View Actual Benchmarking Data! Characteristics of High Performers KPIs are well-defined, tracked and tied to performance reviews Robust self-service options for customer (online FAQs, etc.) Agents cross-trained to handle and resolve multiple call types KPIs are well-defined, tracked and tied to agent performance reviews Sample Size: KPI Type: Unit: Is High or Low Best?: How to read this chart: This chart summarizes the performance gaps between high (Top 5%), mid (Median) and low (Bottom 5%) performers for this Key Performance Indicator (KPI). For example, the column labeled Top 5% represents a company that outperformed 95% of the peer group observed for this metric. 2
4 Benchmarks & Long Tail Analysis SAMPLE CONTENT Purchase to View Actual Benchmarking Data! Avg () Min Top 25% Cut-off Median Bottom 25% Cut-off Max High Performers Low Performers How to read this chart: This chart plots all values within the observed population for this KPI. This chart can be useful in analyzing the upper and lower boundaries (i.e., minimum/maximum values) and the amount of the population that falls above/below the average for the KPI, among other things. 3
5 Benchmarking Report Terms & Conditions OpsDog KPI Reports 2017 OpsDog, Inc. The OpsDog KPI Reports and their contents are protected by copyright laws, contain the trademark OpsDog, Inc., and are OpsDog s proprietary information. No part of this book shall be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording or otherwise, without written permission from OpsDog, Inc. OpsDog, Inc. assumes no liability with respect to the use of the information contained herein which is provided as is and there are no warranties of any kind provided by OpsDog with respect to this report. OpsDog assumes no responsibility for errors or omissions and will not be liable for any damages resulting from the use of the information contained herein. OpsDog, Inc Augusta Dr., Suite 200 Houston, TX Tel:
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