How Many IT Staff per Employee?

Introduction

The Information Technology (‘IT’) function is changing at a rate we haven’t seen before. With the digitization of many businesses and the race to leverage Artificial Intelligence (‘AI’), it’s no wonder that many business leaders are asking how many IT staff they need.

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The short answer to this question is that it depends - On the industry, company size, technology stack, and the culture of your organization. They all influence the ideal IT Staff per Employee ratio for your organization. In this blog, we will explore the following:

• The Typical IT Staff-to-Employee Ratio
• Key Factors That Affect IT Staffing Needs
• How To Optimize Your IT Staff-to-Employee Ratio
• Conclusion

The Typical IT Staff-to-Employee Ratio

A commonly referenced benchmark for IT staffing is a ratio of 1 IT staff member per 50 to 100 employees. This is a very high-level benchmark and relates to back-office IT staff only. For example, this ratio would look very different if it was a software company with most of the employee population likely to be categorized as IT staff.

Another example is of a smaller company with less complex IT needs may be able to operate effectively with fewer IT staff, while larger companies or those in tech-heavy industries (e.g. finance) may require a higher ratio of IT staff to employees. The next section will look at these factors that impact IT staffing needs in a bit more detail.

Key Factors That Affect IT Staffing Needs

1. Industry

Some industries have strict regulatory requirements for data security and system uptime (e.g. healthcare). This means that companies in these industries require more IT staff to ensure compliance, which typically results in a higher IT staff-to-employee ratio.

On the other hand, there are industries that are more industrial in nature, which may not require as much IT upkeep and compliance. Companies in these industries will typically have a lower IT Staff per Employee ratio.

2. Company Size

Larger companies benefit from economies of scale, which is no different when it comes to the number of IT staff required. This means that larger companies typically have a lower IT Staff to Employee ratio. However, some larger organizations may require more IT staff due to their complex infrastructure, networks, and diverse systems.

Comparatively, small businesses will usually have a higher IT Staff per Employee ratio. However, some smaller companies may get by with a leaner IT team.

3. Technology Stack

Companies that use advanced technologies or custom software solutions typically need a more IT staff to ensure everything runs smoothly. The tech stack is also linked to company size, with many larger companies having more complex tech stacks, especially if these companies operate across different countries. IT leadership that is proactive about the technology stack when the company is growing can have a significant impact on the future number of IT staff required.

4. Organizational Culture

Culture is an important, but often overlooked aspect when determining the required number of IT staff. First of all, consider how much IT support your employees require. If your company is highly tech-dependent with frequent troubleshooting, you may need more IT personnel.

Furthermore, if the management team have a reactive approach to solving IT issues, instead of proactively tackling technical debt, then it can result in the need of more IT staff over the long term. Spend time to figure out the IT culture at your organization.

How To Optimize Your IT Staff-to-Employee Ratio

External benchmarks from similar organizations can be a helpful indicator of what your IT staffing requirements should look like. Simply review each of the factors listed above and compare to relevant benchmarks.

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Keep in mind that the optimal ratio for your organization will depend on your specific needs. Regularly assess your IT infrastructure, employee feedback, and growth projections to ensure that your IT team can support the business effectively.

Conclusion

Determining the right number of IT staff per employee isn't a one-size-fits-all answer. Understanding your organization’s size, technology needs, and industry requirements will help you determine the ideal IT staffing ratio. By aligning your IT team’s size with your business goals, you can ensure that your organization has the support it needs to thrive in a technology-driven world.