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| Definition | The total cost in US dollars required to operate the Human Resources function per Full-Time Equivalent (FTE) employee in the HR organization |
|---|---|
| Calculation | Total cost to perform HR function / Total number of HR function FTE |
| Unit of Measurement | US dollars |
| Function | HR organization |
| Method of Estimation | Divide the total cost of HR function by the total number of HR function FTE employees |
| Timeframe | Usually calculated on an annual basis |
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