Human Resources Calculator
1 FTE = 1 Full-Time Equivalent
1 FTE assigned to the human resources team:
- It costs €22,200 annually to the organization;
- Delivers 1,760h/year of work at a cost of €12.62/h;
- Consumes 88h/month in administrative tasks + time & attendance (based on 100 employees);
- Consumes 32h/month in salary processing (based on 100 employees);
With the use of Unikpeople solutions, it reduces the time spent on each of these tasks by 70%, which means:
- Consume only 26h/month in administrative tasks + time & attendance, with the use of Employee Portal;
- Consume only 10h/month in salary processing, with the use of Human Resources Management (HRM);
In this way, it enables teams to invest in Talent Management, increasing the engagement of employees with the organization, with a positive impact on their retention rate.
We also considered a cost of €1,8/month per employee with the current payroll software.
The human resources calculator performs calculations on these assumptions, and does not reflect implementation or cloud infrastructure costs.
SIZE OF THE HR TEAM
What is the ratio between the number of employees and the size of the human resources team?
The HR/Employee ratio measures the relation between the number of HR team members and the total number of employees.
There are many studies on the ideal ratio, such as that of Society for Human Resource Management (SHRM) and the one of Word Economic Forum. The ratio varies with the size of the company and the industry in which it operates, being inversely proportional to the total number of employees.
The Human Resources Calculator considered an average ratio of 1.07%.
COST OF MANAGEMENT
What is the current cost of human resource management in your organization?
Human Resources Management has two important cost structures (OPEX):
- Licensing and maintenance of the software solutions that are used;
- Value of remuneration of the Human Resources team.
We have summarized the tasks that consume the most time for the HR teams.