| Definition | This KPI measures the total budget allocated for the HR function as a percentage of the organization’s revenue. It indicates the amount of resources dedicated to managing human resources in relation to the overall financial performance of the company. |
|---|---|
| Calculation | Total HR budget / (Revenue / 1000) |
| Unit of Measurement | US Dollars |
| Function | HR organization |
| Method of Estimation | The HR budget is determined by analyzing HR needs, estimating costs for various HR activities, and aligning it with revenue projections. The resulting ratio indicates the HR budget as a proportion of revenue. |
| Timeframe | Typically measured annually or periodically during financial cycles. |
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