Definition This KPI measures the average cost incurred to perform the HR function for each employee in a business entity.
Calculation Total cost to perform HR function / Number of business entity employees
Unit of Measurement US Dollars
Function HR organization
Method of Estimation Summing up the HR function costs, including salaries, benefits, training, technology, and dividing it by the total number of business entity employees.
Timeframe Usually calculated annually or on a periodic basis.

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