An organization can use the HR-to-employee ratio, which is the number of HR employees per 100 employees, to determine the effectiveness of the human resources department. This includes how well services are delivered by the HR department. Since company executives can use the HR-to-employee ratio to trim the HR staff, it is important to calculate the ratio properly. The Society for Human Resource Management's 2009 Human Capital Benchmarking Study shows that ratios change by organization size. For less than 100 employees, the median ratio is 3.03 while it is 0.04 for more than 7,500 employees. The ideal ratio varies by organizational needs.
Items you will need
- List of employees
Count up the number of full-time HR employees in the organization. Do not include HR employees who specialize in training and development or payroll. Business Management Daily recommends only counting the full-time employees to get the most accurate ratio.
Look through the employee roster to add up the total number of full-time employees in the organization. For the most accurate ratio, you should leave out any part-time employees. Do not include HR employees in this count, except for the ones that specialize in training and development or payroll.
Divide your total number of HR full-time employees by the total number of other full-time employees. For example, if you have eight full-time HR employees and 300 other full-time employees, it would be eight divided by 300, which equals 0.027.
Multiply your calculated number by 100 to get the ratio. Using the above example, it would be 0.027 x 100 = 2.7 for the ratio. The ratio tells you the number of HR employees per 100 employees in the organization.