Definition The average cost of overhead and other expenses incurred by the HR function for each employee within a business entity.
Calculation Total overhead and other costs of the HR function / Number of business entity employees
Unit of Measurement US dollars
Function Develop and Manage Human Capital – HR
Method of Estimation The cost is calculated based on the actual expenses of the HR function and divided by the total number of employees within the business entity.
Timeframe Typically calculated on an annual basis.

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