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How to Accurately Calculate HR Ratios and Estimate HRO's Potential to Improve Ratio Levels
One indicator of “HR Health,” or at least organizational efficiency, is the HR Ratio, or the ratio of HR employees to all employees. The old standard of one HR employee for every 100 total employees has long been outdated. Yet the HR ratio remains an important metric in understanding the relationship between the HR department and the rest of the organization, and can be a useful indicator of overall efficiency of HR services. This EquaTerra paper will help organizations understand how to calculate the ratio accurately by identifying the nuances when comparing ratios across organizations and HR operating models.
