HR and Finance professionals use headcount benchmarks to evaluate their workforce and make better people decisions.
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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Organizational Design
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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Reduction in Force (RIF)
Companies use headcount benchmarks to assess workforce efficiency and set transformation goals, often referencing top-performing benchmark companies to set their targets.
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Workforce Tranformation
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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Headcount Planning
By evaluating the staffing levels and mix at similar companies with headcount benchmarks, HR and Finance teams can then make well-informed decisions about their own workforce size.
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Rightsizing
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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Talent Management
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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 number of function employees as % of total employees. In the graph opposite, the human resources as % of total employees benchmark mid-range is between 1.39% to 2.99%. The Company is within this range at 1.84%, which suggests a normal sized HR function.
Another metric often used is the number of function employees as % of total employees. In the graph below, the human resources as % of total employees benchmark mid-range is between 1.39% to 2.99%. The Company is within this range at 1.84%, which suggests a normal 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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