Hi Folks
Greetings!
Just wish to put this question as the discussion thread to the forum.
It is true that the HR to employee ratio remains a debatable issue in most organisations. Much depends on the HR vision of the organisation. One of the key factors is to ensure that the ambition and vision should not be out of sync with the ground realities of resources needed to realise the vision. Companies with ambition and vision that also know how to make it real will invariably spend more on HR and have higher ratio. Additionally, companies in the growth phase have fewer bureaucratic controls and processes; thus they do not need as many support personnel. Software firms typically have an employee self-service attitude, thus reducing the number of support staff. Software firms have a tendency to use partners or outsource non-essential functions. For example, the administrative HR functions (payroll, benefits, and training) are outsourced and technology partners provide the recruiting and staffing activities. These tactics dramatically reduce the number of support personnel required in the HR function alone.
HR ratios are based on business requirements and in some cases it can be benchmarked as per the prevalent industry standards. The ratio is generally based on minimum staffing requirements to fulfil the basic HR needs of an organisation.
Your comments Invited
Cheers
Saurabh
Greetings!
Just wish to put this question as the discussion thread to the forum.
It is true that the HR to employee ratio remains a debatable issue in most organisations. Much depends on the HR vision of the organisation. One of the key factors is to ensure that the ambition and vision should not be out of sync with the ground realities of resources needed to realise the vision. Companies with ambition and vision that also know how to make it real will invariably spend more on HR and have higher ratio. Additionally, companies in the growth phase have fewer bureaucratic controls and processes; thus they do not need as many support personnel. Software firms typically have an employee self-service attitude, thus reducing the number of support staff. Software firms have a tendency to use partners or outsource non-essential functions. For example, the administrative HR functions (payroll, benefits, and training) are outsourced and technology partners provide the recruiting and staffing activities. These tactics dramatically reduce the number of support personnel required in the HR function alone.
HR ratios are based on business requirements and in some cases it can be benchmarked as per the prevalent industry standards. The ratio is generally based on minimum staffing requirements to fulfil the basic HR needs of an organisation.
Your comments Invited
Cheers
Saurabh