Hi Folks
Greetings!
Just wish to put this question as the discussion thread to the forum.
It is true that the HR to employee ratio remains a debatable issue in most organisations. Much depends on the HR vision of the organisation. One of the key factors is to ensure that the ambition and vision should not be out of sync with the ground realities of resources needed to realise the vision. Companies with ambition and vision that also know how to make it real will invariably spend more on HR and have higher ratio. Additionally, companies in the growth phase have fewer bureaucratic controls and processes; thus they do not need as many support personnel. Software firms typically have an employee self-service attitude, thus reducing the number of support staff. Software firms have a tendency to use partners or outsource non-essential functions. For example, the administrative HR functions (payroll, benefits, and training) are outsourced and technology partners provide the recruiting and staffing activities. These tactics dramatically reduce the number of support personnel required in the HR function alone.
HR ratios are based on business requirements and in some cases it can be benchmarked as per the prevalent industry standards. The ratio is generally based on minimum staffing requirements to fulfil the basic HR needs of an organisation.
Your comments Invited
Cheers
Saurabh
From India, New Delhi
4Greetings!
Just wish to put this question as the discussion thread to the forum.
It is true that the HR to employee ratio remains a debatable issue in most organisations. Much depends on the HR vision of the organisation. One of the key factors is to ensure that the ambition and vision should not be out of sync with the ground realities of resources needed to realise the vision. Companies with ambition and vision that also know how to make it real will invariably spend more on HR and have higher ratio. Additionally, companies in the growth phase have fewer bureaucratic controls and processes; thus they do not need as many support personnel. Software firms typically have an employee self-service attitude, thus reducing the number of support staff. Software firms have a tendency to use partners or outsource non-essential functions. For example, the administrative HR functions (payroll, benefits, and training) are outsourced and technology partners provide the recruiting and staffing activities. These tactics dramatically reduce the number of support personnel required in the HR function alone.
HR ratios are based on business requirements and in some cases it can be benchmarked as per the prevalent industry standards. The ratio is generally based on minimum staffing requirements to fulfil the basic HR needs of an organisation.
Your comments Invited
Cheers
Saurabh
From India, New Delhi
Dear Saurabh,
believe it or not, HR across the world is going through major transformation phase. Reasons are enumerative
Global Culture
Leaner structure
stress on Delivery not on performance
Organiusation getting into Core Competencies
Era of Out sourcing
etc.....
Looking into that the focus is no more in the size of team but competencies of team and ability to deliver as HR has also become profit centre by itself.
Size has also become un important as what was traditionally thought the core area of HR has now a out sourced process where HR ahs only contract management Role.
Therefore what is needed in HR is a resilient and agile role and as the chinese proverb say" May we live in interesting time"
Cheers
Dhole
From India, Delhi
believe it or not, HR across the world is going through major transformation phase. Reasons are enumerative
Global Culture
Leaner structure
stress on Delivery not on performance
Organiusation getting into Core Competencies
Era of Out sourcing
etc.....
Looking into that the focus is no more in the size of team but competencies of team and ability to deliver as HR has also become profit centre by itself.
Size has also become un important as what was traditionally thought the core area of HR has now a out sourced process where HR ahs only contract management Role.
Therefore what is needed in HR is a resilient and agile role and as the chinese proverb say" May we live in interesting time"
Cheers
Dhole
From India, Delhi
Dear Saurabh :wacko: Any decision on the ratio of HR strength to the overall strength would depend on factors like nature of orgn, Size, age, phase of growth, mgt. approach, ownership details etc. To fix an ideal is difficult. With outsourcing becoming the order of the day, many HR maintenance functions can be easily outsourced and needs to be done so. Keeping more service function personnel is a serious drain on resources and tends to stray the focus. In deed it is learnt that TISCO has formed a subsidiary company to look after areas like estate management and it is a profit centre from day one. HR professionals needs to be focussed on this aspect of reducing the manpower requirements in non-value addition jobs. As a finance man put it, the value addition of each man shall be greater than the cost he is to the company. Reckoning by such standards many jobs in the HR area are on the chopping block. So a ratio which is good for today may be seen as excessive tomorrow. By general standards, keeping today's condition a less than 10% strength would be optimal. Regards KK Nair
From India, Bhopal
From India, Bhopal
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