Human Resources Benchmarking 2025

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Employee benefits benchmarking provides leaders with the data they need to evaluate their employer-sponsored healthcare plans, other talent and reward offerings, such as paid time off, and their supplemental, part-time and retirement benefits.
Good service firms generally have a ratio of 25% overhead staff and 75% revenue staff. If a company has 25% of its people in overhead but their compensation is too significant, this can be determined by looking at the SGA ratio.
Benchmarking HR budgets is key to good spending decisions A well-planned HR budget is essential to the functions success and ensures critical HR initiatives receive adequate funding. However, only 20% of HR leaders consult external benchmarks for their budget recommendations.
Benchmarks for HR to Employee Ratio ing to the Society for Human Resource Management (SHRM), the average HR to employee ratio stands at 1.70, which translates to nearly 2 HR professionals for every 100 employees. But heres the thing theres no one-size-fits-all benchmark for this ratio.
The term benchmarking as it relates to human resources refers to the need to compare standards set by a department, unit, division, or college with those of comparable institutions or stakeholders. Benchmarking can be done through survey, phone calls, email, purchasing information, or using internal data available.
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Benchmarking is the process of comparing similar characteristics between or within businesses, identifying the most successful practices, and integrating them into the company procedure. After collecting data for comparison purposes, HR professionals can better determine the benchmarkthe target they want to shoot for.
This ratio depicts the amount of HR expenses as a percentage of total operating expenses, which is an indication of the amount of dollars an organization invests in its HR function. HR-expense-to-FTE ratio represents the amount of human resource dollars spent per FTE in the organization.
Common Financial Ratios Generally, a ratio of 1.5 to 2 is ideal, and between 1 and 1.5 is acceptable. A ratio less than one is unfavourable. A positive working capital will ensure the operation can cover short-term debts and operating expenses.

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