M&A consultants use functional benchmarks to assess how the size, structure, and efficiency of a workforce compares to that of similar companies in the same industry.
.svg)
Functional benchmarks are used by consultants to quickly size up the number of people required by department, helping to engage leadership early on in the design process.
.svg)
Benchmarking is often used early in a transformation process to understand what changes can be achieved, whether it is to restructure the workforce for growth or drive rapid cost out.
.svg)
Benchmarks help consultants to determine the size of each function required in the target operating model, whether it is a standalone business or an integrated group of companies.
.svg)
Consultants leverage benchmarks to assess headcount efficiency by function, then use them to quantify the size of the opportunity for functions that may be inefficient.
.svg)
Restructuring professionals use benchmarks to assess the workforce size of distressed companies, before using them to set headcount reduction targets in their turnaround plan.
.svg)
.svg){kind=icon}
.svg){kind=icon}
The higher the revenue per function employee figure the better. In the graph opposite, revenue per finance employee benchmarks have a mid-range of $6.53M to $13.12M, while the Company is $5.75M. This suggests that the Company has an overweight finance function that should be investigated.
The higher the revenue per function employee figure the better. In the graph below, revenue per finance employee benchmarks have a mid-range of $6.53M to $13.12M, while the Company is $5.75M. This suggests that the Company has an overweight finance function that should be investigated.
Another metric often used is the ratio of function employees to all employees. In the graph opposite, the HR to employee benchmark mid-range is between 47 to 108. The Company has a HR to employee ratio of 60, which is within this range and suggests a appropriately sized HR function.
Another metric often used is the ratio of function employees to all employees. In the graph opposite, the HR to employee benchmark mid-range is between 47 to 108. The Company has a HR to employee ratio of 60, which is within this range and suggests a appropriately sized HR function.
The lower the turnover the better, but having none would be a bad thing. In the graph opposite, the turnover rate for the Company is 7.61%, which is below the benchmark 25th percentile of 8.43%. This low turnover figure suggests that the Company has a stable, happy, and productive workforce.
The lower the turnover the better, but having none would be a bad thing. In the graph below, the turnover rate for the Company is 7.61%, which is below the benchmark 25th percentile of 8.43%. This low turnover figure suggests that the Company has a stable, happy, and productive workforce.
.svg)