Calculating HR Operation Costs: How Do You Determine Costs for 1000 Employees?

Hi All,

I am working on a project where I need to prepare a report on how to calculate HR operation costs. Let's assume there are 1000 employees in a company and 5 people in HR operations. How do I calculate what the HR operation cost is for the company? And how do I calculate the operation cost per employee?

Regards,
Sameer :-)

Hi Sameer,

Though I'm not into HR, but to an extent, what I know to my knowledge is that... Illustrating with the example mentioned above.

How to calculate what is the HR Operation Cost for the Company:
{Sum of (Direct cost) + Sum of (Indirect cost) per employee} / total number of employees in the organization

Where Direct cost includes Salary, bonus, software/hardware purchase, training, license, stationery, operation cost.

Indirect Cost includes the cost charged by the Payroll Processing department of the organization called Interdepartment cost, seat/space cost occupied by an employee.

How to calculate Operation Cost per employee? - The above can be applied here for the other employees too / total number of employees.

This is just a vague idea that I had and wanted to convey, but I think people here would give you more appropriate answers. Excuse and correct me if anything in the above is false.

Hi Bishnu,

You need to give more background information to your query to receive an informed reply. I suggest that you read the following site and see if your query has been answered: http://web.mit.edu/newsoffice/2001/finaid.

Simhan