Measuring the Efficiency of Distributor HR Departments

The biggest challenge for many companies is quality personnel…how to recruit them, train them and retain them. Talent is a company’s greatest asset.

As the effort expended in HR grows, combined with continued regulatory and administrative issues, HR departments will need to continue to grow, along with finding quality people to man these departments. These “people performance managers” will become essential members of senior management teams.

HR departments, historically, have been considered “overhead”, or cost-centers. Efficiency is key. The advent of human resource information systems and enhanced HR and benefits outsourcing help mitigate the personnel investment. But what is the “right” HR personnel investment?

A client recently asked about HR personnel benchmarks. Specifically she asked, “What is the industry ratio of HR personnel in a department to the number of people within a company?” Essentially she was asking “How do I know if my department is efficient?”

Which is where we could use your assistance.

We are discreetly gathering information from distributors of the number of employees and HR personnel they have in their company. We will then calculate an overall industry average and share the result with everyone who provides information. If you are interested in participating, email your company name, number of employees and number of HR personnel to David. We’ve already heard from some companies.

Thanks, and it should go without saying that all input is confidential.

How are you addressing your HR efficiency challenges? Which HRIS system have you installed? What have you outsourced?