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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