Issue: It can be easy to misuse or misinterpret the controversial HR-to-employee ratio.
Benefit: That metric can help measure HR effectiveness, but only if interpreted and used correctly.
Action: Recalculate your ratio using the advice below, then use the number as a guide for future staffing.
HR-to-employee ratios are a somewhat controversial metric that can help establish HR staffing and determine how well HR delivers services. But you should calculate and use the number correctly, or don't use it at all.
"The ratio is very helpful if you know what you're doing," says James Hatch, a partner with PricewaterhouseCoopers' Saratoga Institute, which specializes in HR metrics. "But it can be very dangerous if you don't know what you're doing."
One key danger: Executives may use ratios as a reason to cut HR staff.
Many HR professionals don't calculate the ratio correctly. Here's how to do it right: Divide the number of HR full-ti...(register to read more)
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