Human Resources Budgets, Staffing, and Process Metrics

How much are organizations budgeting for their human resources (HR) function, and how many HR professionals do they require? What is the allocation of HR resources by job function and types of HR, and what is the split between internal and external personnel (outsourced or in shared services centers)? How is the HR budget allocated? What are the key performance metrics for the HR function? To answer these questions, and others, we provide our HR Budgets, Staffing, and Process Metrics study. For a full description, read more below.

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Chapter 1: Executive Summary (Coming Soon)
Chapter 2: Composite Metrics (Coming Soon)
Chapter 3A: Metrics by Organization Size: Small/Midsize (Coming Soon)
Chapter 3B: Metrics by Organization Size: Large (Coming Soon)
Chapter 4: Banking and Finance (Coming Soon)
Chapter 5: Energy and Utilities (Coming Soon)
Chapter 6: Healthcare Payors (Coming Soon)
Chapter 7: Healthcare Provider (Coming Soon)
Chapter 8: Life Sciences (Coming Soon)
Chapter 9: Discrete Manufacturing (Coming Soon)
Chapter 10: Process Manufacturing (Coming Soon)

INTENDED AUDIENCE

For Chief HR Officers and HR professionals, this study provides key metrics and unbiased data for benchmarking your organization’s HR function, with a focus on HR budgets and staffing levels and key performance metrics. This study will allow you to achieve the following outcomes:

• Benchmark your HR budget levels. Compare them with those of organizations in your industry sector.
• Manage your HR staffing levels, including internal staffing as well as external staff—those within business process outsourcing (BPO) providers or in shared services units. A variety of staff productivity metrics are provided (see below)
• Evaluate your HR key performance indicators (KPIs). These allow you to compare the performance of your HR organization against your industry peers.

For business process outsourcing (BPO) providers, this study provides valuable insights into current HR budget and staffing metrics, giving up-to-date insights into the market landscape. It also provides insights into the current use of external HR personnel for various job positions.

KEY METRICS DESCRIPTIONS

Each chapter begins with an introduction, presenting the key findings.

Section 1: Demographics

We then provide a description of the demographics of the survey sample for the chapter. These include organization-size demographics, including organization revenue, SG&A spending levels, number of employees, and revenue per employee.

We continue with HR demographics, including total HR staff head count, employee growth rate per year, attrition rate for past fiscal year, and contingency workers as a percentage of the total HR staff head count.

Section 2: HR Staffing Metrics

This section provides typical staffing levels for the HR function. This includes internal staff, which includes contingency workers, and external staff, which includes HR personnel in global capability centers (GCCs) or shared services centers, outsourcing service provider personnel serving the HR function, or residing in other departments.

• Corporate Employees per HR Staff Member
• Contingency or temporary worker staff as a % of internal HR staffing
• HR staffing across internal, GCC, and outsourced (% split)
• HR staffing across by internal, GCC, and outsourced by sub-process (% split)

Section 3: HR Function Budget Metrics

This section looks at the annual budget for the HR function. In other words, we examine how much organizations spend to operate their HR operations.

• HR Function Budget as Percentage of Revenue
• HR Function Budget as Percentage of SG&A
• HR Budget by Line Item: Internal and External Personnel; Technology; Outside Services; Other

Section 4: HR Spend Metrics

In this section, we provide benchmarks for HR spend, that is, how much organizations spend for HR services. In this section, we include all HR spending, whether it is processed by internal or external HR personnel.

• HR spending per employee
• HR spending across sub-processes (% split)
• HR spending across internal, GCC, and outsourced personnel (% split)

Section 5: HR Organization Key Performance Metrics

In this section, we provide benchmarks to evaluate the key performance metrics of the HR function.

• Attrition rate
• HR spend percentage split across personnel, tech, GCCs and SSCs, and outsourcing
• Employees per HR staff member
• Cost per hire
• Number of payroll cycles run per annum

Section 6: HR Technology Trends

This section provides an overview of HR technology implemented to support HR processes of the organization..

• Top 10 HR Systems
• Number of HR Personnel (Direct & Indirect) per HR Tech Specialist
• Percentage of HR Tech Specialists by Organizational Unit: Internal, IT, Shared Services

APPENDIX

The Appendix includes common terms and definitions used in our annual survey and in this study. It also includes a detailed definition for all HR spending categories and staffing categories. The Appendix concludes with a brief discussion on the statistics used in this study.

• Common Terms and Definitions
• HR Budget Categories
• How We Define HR Job Functions
• Statistical Notes

CHAPTER DESCRIPTIONS

Chapter 1: Executive Summary

This chapter provides an overview of the key findings from the full study and describes the contents of the subsequent chapters. It also includes information on the study participants and the survey methodology.

• Introduction
• Key Findings
• Overview of the Study Contents

Chapter 2: Composite Metrics

This chapter provides composite metrics for all of the organizations surveyed, across all industry sectors and organization sizes.

Chapter 3A: Metrics by Organization Size: Small/Midsize

This chapter provides procurement business process metrics for small and midsize organizations across all industries.

Chapter 3B: Metrics by Organization Size: Large

This chapter provides procurement business process metrics for small and midsize organizations across all industries.

Chapter 4: Banking and Finance

Chapter 4 provides benchmarks for banking and financial services companies. The firms in this sector include commercial banks, investment banks, credit unions, mortgage lenders, consumer finance lenders, and other types of lenders and financial services providers.

Chapter 5: Energy and Utilities

Chapter 5 provides benchmarks for public utilities, oil and gas producers, service companies, and midstream distributors across all organization sizes. The respondents in this sector include public utilities (water, gas, and electric), integrated energy companies, upstream exploration and production companies, natural gas companies, pipeline operators, and other energy and utilities companies.

Chapter 6: Healthcare Payors

Chapter 6 provides benchmarks for health insurance companies. The firms in this sector include companies that sell medical and dental insurance along with healthcare providers that also offer health insurance plans and function as healthcare payors.

Chapter 7: Healthcare Providers

Chapter 7 provides benchmarks for healthcare providers, including hospitals, group of hospitals, nursing homes, and other healthcare services providers.

Chapter 8: Life Sciences

Chapter 8 provides benchmarks for life sciences companies.

Chapter 9: Discrete Manufacturing

Chapter 9 provides benchmarks for discrete manufacturing organizations. Discrete manufacturers are defined as those where the production process adds value by fabricating or assembling individual (discrete) unit production. The category includes manufacturers of consumer products, athletic equipment, industrial equipment, telecommunications equipment, aerospace products, furniture, auto parts, electrical parts, medical devices, and electronic devices, among other products.

Chapter 10: Process Manufacturing

Chapter 10 provides benchmarks for process manufacturers. Process manufacturers are defined as those where the production process adds value by mixing, separating, forming, or chemical reaction. The sector includes manufacturers of chemicals, petrochemicals, semiconductors, pharmaceuticals, dietary supplements, food and beverage products, cosmetics, building materials, packaging materials, steel, glass, paper products, and other process-manufactured goods.

HR BENCHMARKING

Avasant Research not only publishes business process metrics. We also provide custom benchmarking services for clients.

Looking for expert assistance in evaluating your HR budgets, staffing, and key performance metrics? Our custom benchmarking consulting service provides an in-depth assessment of your HR key metrics against our database of peer organizations. Contact us for pricing and a free sample of the benchmarking deliverable.