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KPI for Measuring of FTE per HR FTE posted in category HR

WinningKPI - HR - KPI for Measuring of FTE per HR FTE posted in category HR Oana Boteanu Details:
This indicator is for measuring the FTE per HR FTE. It is calculated by dividing the Total FTE (excluding HR) by the HR Department FTE. This measures the ratio between HR FTE and the rest of the company's FTE count, and gives a clear figure of how many FTEs are in the company per 1 HR FTE.
The FTE will look at full time equivalent, therefore, for part time employees FTE will calculate as 0.5 (or more depending on number of hours per week).
This KPI can also be calculated using FTE headcount, and the result will represent the number of employees per HR employee.
Companies may use this to measure the cost of the HR department, or use it when measuring the performance of the HR Department. It can be joint with the HR Department Cost per FTE KPI.

Formula:
Total FTE (excluding HR)/HR FTE

KPI Units: number (FTE)

KPI Time Frame: update annually

Posted by Oana Boteanu | Help to protect community: Flag for moderation

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Here are comments:

KPI Expert In the company I work for we had to carry out a major restructuring due to budget cut. The leadership team decided to minimize HR and admin costs.
This KPI was one of the first measures that we used to identify the ratio between HR and the rest of the organisation and whether a reduction in the HR team was feasible.

Total company FTE: 350
Total HR FTE: 10
Total FTE excluding HR FTE: 340

FTE per HR FTE:
Total FTE (excluding HR)/HR FTE
340/10 = 34
Ratio: 34:1, where every HR full time employee is accountable for 34 FTEs

We reduced the HR team to 5 and we obtained the following ratio:
340/5= 68, therefore every 1 full time HR employee is now accountable for 68 FTEs

Oana Boteanu | + | September 9, 2012 at 5:31 am

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