Definition This KPI measures the average cost incurred to perform HR activities per full-time equivalent (FTE) employee within the HR function.
Calculation Total personnel cost for the HR function / Number of FTE employees within the HR function
Unit of Measurement US dollars
Function Develop and Manage Human Capital – HR
Method of Estimation The personnel cost includes salaries, benefits, training expenses, and other HR-related expenses. The FTE count considers both permanent and temporary employees.
Timeframe This KPI is typically calculated on an annual basis.

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