| 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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