How to Calculate HR-to-Employee Ratio

Manage your business better by saying sayonara in your outdated HR management Excel. All you need to calculate the HR-to-employee ratio is a simple formula. You don’t need to do time-consuming analyses or comparisons. To make these calculations, you need to know one thing: the number of employees you have. From there, you can answer the question: ‘How many employees do I need in my company’s human resources department?

An organization can calculate the HR-to-employee ratio to determine the effectiveness of the human resources department. The index measures the number of employees (HR) per 100 employees. The measure is used to determine how well the HR department provides services to the rest of the team.

Uses of the HR-to-Employee Ratio

Business managers can use the HR-to-employee ratio to reduce HR staff if it is determined that the company has hired more HR employees than necessary to manage HR needs. Or vice versa, the company may find it has grown to the point where more HR people are needed to manage employees effectively. By being able to calculate the ratio correctly, entrepreneurs help with these important personnel decisions.

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