HR Organization
The question of whether or not outsourcing can achieve cost savings and service improvements is not a matter of debate among HR administrators. The key questions for HR directors are what HR functions should be outsourced, when should they be outsourced, and to whom should they be outsourced?
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Assessing the current structure and performance of the HR organization can provide clear answers to these questions, as well as a key indicator of how such arrangements are currently performing. Critical indicators include the number of employees assigned to particular tasks, current productivity, and individual transaction costs.
APQC’s HR organization assessment provides overall key performance indicators for the HR function that can unearth new opportunities of high relevance to senior vice presidents and directors of HR. For example, human resources cost as a percentage of revenue varies widely across organizations. The range between low and high performers is staggering. Across all participants, median performers spend $6.03 on human resources per $1,000 revenue, and bottom performers’ costs are more than five times those of top performers.
The list below represents a few of the other metrics included in this assessment:
- Turnover
- Normalized budget and cost of the HR function
- HR cost breakdown
- HR administration
- Payroll administration
- Learning administration
- The number of employees served per HR FTE
- Employee and manager self-service access
- Compensation statistics by level (senior, mid-, and operational)
- Learning management system statistics
- Demographic statistics (organizational level, age, and tenure)
Why Trust APQC?
Founded in 1977, APQC is a member-based nonprofit organization. With over 500 members, APQC serves as a steward for broader open standards benchmarking, providing global, consistent process measurement.
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