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November
11, 2003
Do
You Know...
Astron's clients are in the news!
Meridian Health,
which encompasses Jersey Shore University Medical Center,
Ocean Medical Center, and Riverview Medical Center, was
recently presented with the Outstanding Employer Award by
the New Jersey Business and Industry Association (NJBIA).
Meridian Health was honored for its Total Rewards
Partnership Program, which exchanges its employees’
expertise, hard work, and dedication with income,
professional development, health and retirement benefits,
work and personal life programs, and an environment and
culture based on trust, teamwork, and a shared vision for
excellence. As a result, Meridian has one of the lowest
employee turnover rates in the state and has achieved such
employee-satisfaction driven accomplishments such as being a
two-time recipient of the Magnet Award for Nursing
Excellence. For more information about Meridian’s Total
Rewards Partnership Program,
click here.
Is Your HR Department
Adequately Staffed? An Analysis of HR Staffing Ratios
The HR
staffing ratio - which compares the number of HR staff
members to the number of employees they serve - is often
used as a benchmark to determine HR's capabilities and
assess the need for outsourcing.
According to the SHRM/BNA survey-based report entitled
HR Department Benchmarks and
Analysis 2003, the median ratio of HR staff to
all employees in 2003 is 1:100, up from 0.9:100 in 2002. The
report explains, "The change is likely due to
reductions-in-force that have not yet been met with
proportional adjustments in HR department staff levels. Put
another way, HR employees have remained on staff to deal
with the fallout from job eliminations and layoffs." Only
slight fluctuations (of one-tenth of an HR staff member per
100 employees) have occurred in the survey's 26-year
history.
While the 1:100 ratio is often recommended, and has remained
constant in overall pictures of HR staffing, it should not
be interpreted as the ideal for every organization. A number
of exceptions, modifiers, and caveats apply.
First, there tends to be a lower ratio for larger
organizations, which are able to afford the automation and
outsourcing that make an HR department more efficient with
fewer employees. Smaller organizations, on the other hand,
may require more than 1 HR employee per 100 employees in
order to serve all functions. Of course, any organization
with fewer than 100 employees and one full-time HR employee
will see a skewed ratio.
Industry also affects the median ratio. In healthcare,
non-profits, and the public sector, there are often
comparatively fewer HR staff members.
As the outsourcing of HR functions becomes more widespread,
maintaining a 1:100 ratio may be unnecessary for some
organizations. The BNA/SHRM report reveals that almost
three-quarters of surveyed employers outsource some facet of
human resources to consultants or vendors outside of the
organization.
Varying levels of HR automation may also have a profound
effect on this ratio. If, for instance, employees are able
to access a wide variety of information via online human
resource self-service portals, they may become more
self-sufficient and require fewer HR employees to tend to
their needs.
On the other hand, more needy employees - including those
less comfortable with technology, or large groups of new
hires in need of training - may require more than one HR
staffer per 100.
The depth and breadth of an HR department's skills are also
factors, as is the ability of senior staff to effectively
delegate to junior members. A disproportionate number of
senior or junior staff members will also alter the staffing
needs of the department.
Finally, whether or not it is made explicit, each
organization's human resources department will fill a role
appropriate to its culture. If HR's function is primarily
administrative, it will require significantly less staff
than a department responsible for the development and
implementation of strategic human resource plans as well as
day-to-day administrative tasks.
In short, a simple analysis of the HR staffing ratio in your
organization alone will be insufficient to support staffing
or outsourcing requests. An HR audit, however, can deliver a
complete picture of the capabilities and needs of an
organization's human resource department.
Due to the complex nature of these issues and an
overwhelming interest in the HR staffing ratio among Astron
Solutions' internet community, we are currently considering
undertaking an HR staffing ratio survey that better
positions these data in their cultural contexts.
Would you be interested in
participating and/or receiving the results of our HR
staffing ratio survey? Let us know!
Click here to
participate in our brief four question survey. Your feedback
is requested by Monday, November 17. Your input is greatly
appreciated!
Wonder what your fellow readers think about critical HR topics? Is your organization unique from or similar to others?
Click here to view the results of our past polls!
If you have a topic you would like addressed in Astronology, or some feedback on a past article, don't hesitate to tell us! Simply reply to this e-mail. See your question answered, or comments addressed, in an upcoming issue of Astronology.
Looking for a top-notch presenter for your human resource organization's meeting? Both Jennifer Loftus and Michael Maciekowich present highly-rated sessions on a variety of compensation and employee retention issues. For more information, send an e-mail to
info@astronsolutions.com.
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Send inquiries to
info@astronsolutions.com or call 800-520-3889, x105.
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Copyright 2007, Astron Solutions, LLC
ISSN Number 1549-0467
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