The research was aimed at finding out the ratio of HR staff to total headcount or total workforce. Whatever ratio comes out is interpreted per 100 employees. For example, a ratio of 1.8 means almost 2 HR staff for every 100 employees. The lower the ratio the more efficiently staffed an HR function is. This ratio must be interpreted within the context of each industry and the level of automation in the business. 45 HR Professionals responded. It was not possible to do specific analysis by industry due to the smaller size of the sample.
Summary of Key Findings
- There is a significant correlation between HR staff numbers and overall headcount r = 0.67. The more the headcount increases the more people are recruited to man the human resources function.
- There is no significant relationship between HR headcount and the sector they fall under.
- There is a significant negative relationship between overall headcount and HR to staff ratio(r=-0.43). The larger the headcount being managed the smaller the ratio of HR staff per 100 employees. Put differently the smaller the organisation the higher the number of HR people required per 100 people. This finding is consistent with research from other studies as well.
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