HR Benchmarking – How does your organization compare?

Managing Human Resources is likely not your core business… but it is ours. We will talk about Creating an Effective Human Capital Strategy later this week, but let's examine this first. For most businesses, it’s a necessary evil, but with the right help and approach to this critical business function, your company can reach new levels of productivity and competitiveness. We’ve spent nearly two decades working with SMBs and have learned how to help them perform at their best, so we wanted to take a moment to share some data that you need to use as we all begin planning for 2017.

Our team here at Windsor HR has compiled research from groups like SHRM (Society for Human Resources Management), Bloomberg BNA, the US Census Bureau, the Bureau of Labor Statistics, the Department of Labor and others to help serve as benchmarks against which you must compare and examine your approach to your HR function as we begin to look towards 2017.

For the sake of this article, we will be focusing on organizations with 10-250 employees. Coincidentally, this happens to be our sweet spot in the market in terms of client size.

While investigating all of this, we found that one of the key findings is that companies have an average HR staff of 2 per 100 employees. 21% of this staff is unqualified, or underqualified, for the role, and the smaller the size of the organization, the more likely it becomes that someone who has not yet been equipped to master the HR role, and make it a profitability tool, has been saddled with the responsibility. A large portion of these employees do, however, have the ability to drive revenue when focused on non-human resources responsibilities.

  • Average Cost per hire: $4,100

  • Average Time to Fill a Position: 42 days

  • Involuntary Turnover Rate: 8%

  • Overall Turnover Rate: 19%

  • Organizations with Succession Plans: 34%

  • HR Expense to Operating Expense Ratio: 15%

  • Median HR Expense per Employee: $1,465

  • HR Executives Who Use Metrics in Planning: 48%

  • HR Executives Who Put Controlling Health Care Costs among their Top Priorities: 73%

“Great, now I have more data to interpret… what now?” you say. Well, it’s time to give your people function a place at the table, if not because you feel the function is important, maybe then because you like your money!

HR should be all about “Show Me My Money” for you as a business leader, and if you don’t know where it is and why, and how it’s benefiting the organization, then you may need to re-think your strategic planning approach.

As a small business, you need to embrace the tools available to you whether that is your internal HR team or an external HRO partner like Windsor. In most situations, an HRO provider can immediately deliver improved profitability through increased productivity, reduced liability, minimized non-revenue generating time spent, and decreased overall labor costs. If your company is anything close to “average” when it comes to the national averages found in these benchmarking survey results, you and your team will benefit from working with an outsourced HR function.

If you’re interested in an evaluation to see if you are a fit for Windsor’s model, and if so, how much we can deliver for you, visit our site here.

If you have some general HR related questions, we are always happy to answer them and may even use the question for an article topic. Ask us here.


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