Benchmarks empower HR teams with data from similar companies to help determine the number of employees required in each function at any stage of the design process.
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Benchmarking is used to identify functions within a workforce that may be overweight. HR and Finance teams can then focus on these parts of the business for people cost savings.
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Companies use benchmarks to assess the efficiency of each department and set transformation goals, often referencing top-performing benchmark companies to set their targets.
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HR and Finance teams leverage benchmarking data from larger companies to determine how many people and the mix of skills that their business is likely to need in the future.
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By evaluating the staffing levels and mix at similar companies using functional benchmarks, HR and Finance teams can then make well-informed decisions about their own workforce size.
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Benchmarking helps HR teams to quickly identify where talent management issues exist, with reference to metrics like turnover, new hires as % of employees, and average tenure.
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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.
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