Definition This KPI measures the total cost of personnel (including salaries, benefits, and related expenses) for the HR organization as a percentage of revenue generated by the business entity. It indicates the efficiency and cost-effectiveness of the HR department.
Calculation Total HR organization personnel cost / (Total revenue / 1000)
Unit of Measurement US Dollars
Function HR organization
Method of Estimation The HR organization personnel cost is calculated by adding up the salaries, benefits, and related expenses of all HR staff. The total revenue is divided by 1000 to normalize it to $1000.
Timeframe Usually calculated on an annual basis or for a specific reporting period.

Return to the full list of HR KPIs