HR to Employee Ratio

1lonestar

Do you have survey data on HR to employee ratios for both the public and private industry?

SDDCHR

Obviously, noone has seen such data? Nor have I. I have heard that the average of HR/HR assistants to employees is around 1 for every 100. However, some of us unfortunate HRM's handle a lot more employees then that!

Nick Ogden

The last data I saw was for 2002; in the manufacturing/construction industries the ratio was 1/75, about the same for banking.

sonny

There was quite a good discussion on this not too long ago, but I can't find it. Does anyone remember?

Gillian

There was a discussion but I don't remember the name of the thread or how long ago. In any event, the data comes from a joint SHRM/BNA study which has been going on annually for over 25 years. the 1 per 100 employees is a national average which has varied just slightly over the entire time the survey has been going on. There are wide differences depending upon industry type.

jimlegal

For what its worth... Our ratio is 1 to 75. Hope you find this information helpful.

Don D

[font size="1" color="#FF0000"]LAST EDITED ON 03-14-03 AT 09:33AM (CST)[/font][p]I think that the ratio information long ago outlived its usefulness, if it ever was useful. Now I think the staffing level of the HR Department ought to be based more on these considerations: Does the company have a self-funded health policy that is administered in house? Does the department have responsibility for administration of the 401(k)? Is there corporate support staff at another location? Is there a union contract to administer and is it largely the responsibility of Human Resources (typically is)? What type of reception/switchboard system exists and is this a responsibility of Human Resources? Are policies and procedures developed in house and by this department? Does the head of the department have responsibility for training within the company? Do HR staff plan and conduct regular orientation? Do any payroll functions or backup duties exist within the department? Is there a corporate attorney? Do you have an EAP? Does the company have 800-dial-up assistance available to employees for their questions about retirement plans, EAP, health insurance procedures? Is there an ISO-9000 series program in place and does HR have a record maintenance responsibility for it? And on and on. To me, these types of considerations are much more useful as planning (and begging) tools than are (un)magical ratios that have little if any relative value. Just my thoughts.

WOCO Frank

Very good points to consider, Don.

Our HR staff handles all the "basics", plus safety /risk management, and a self-funded vision/dental program. We use a TPA for the profit sharing plan and group health.

Of course, our HR staff is named Frank. Our ratio is - Me:Others. Right now, that equates to 1:300. Now, if you want to include Payroll, which is done completely in-house, the ratio changes dramatically, as the HR staff doubles to two.