SHRM

CUSTOMIZED
HUMAN CAPITAL
BENCHMARKING
REPORT
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HUMAN CAPITAL BENCHMARKING REPORT

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LICENSE AGREEMENT FOR THE SHRM CUSTOMIZED BENCHMARKING REPORT

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1
TABLE OF CONTENTS

License Agreement for the SHRM Customized Benchmarking Report 1

A Guide to Your SHRM Customized Benchmarking Report 3

Customized Tables Based on Your Criteria 5

Human Capital Glossary of Metric Terms, Definitions and Calculations 16

2
A GUIDE TO YOUR SHRM CUSTOMIZED BENCHMARKING REPORT

Understanding the Data report, the greater the need for additional
scrutiny.
As you compare your own data against the
other organizations, please keep the
3. In cases where you determine that
following in mind:
potentially serious deviations do exist, it
may be helpful to go back and calculate the
1. This report is based on data derived from
same benchmarking measure for your
the SHRM Customized Benchmarking
organization over the past several years to
Database, which contains organizational
identify any trends that may exist.
data from a random sample of SHRM
members. The report is designed to target
4. The information in this report should be
companies that closely match the selected
used as a tool for decision-making rather
criteria to allow for a more focused and
than an absolute standard. Because
comparable analysis and interpretation.
companies differ in their overall business
Therefore, any interpretations of these data
strategy, location, staff size and other
should be kept within this context.
factors, any two companies can be well
managed, yet some of their benchmarking
2. A deviation between your figure for any
measures may differ greatly. No decision
benchmarking measure and the comparative
should be made solely based on the results
figure is not necessarily favorable or
of any one study.
unfavorable; it is merely an indication that
additional analyses may be needed.
Benchmarking measures that relate more
Working with the Data
closely to the context of your organization’s The information in this report is designed to
industry and staff size are more descriptive be a tool to help you evaluate decisions and
and meaningful than information that is activities that affect your organization.
more generic in nature, such as all industries When reviewing these data, it is important
combined. The larger the discrepancy to realize that business strategy,
between your figure and those found in this organizational culture, leadership behaviors

3
and industry pressures are just a few of the that cause differences with your
many factors that drive various organization’s benchmarks.
organizational measures. Absolute measures
are not meaningful in isolation—they Notes
should be compared with one or more
The data in this report were collected from
measures to determine whether a
February to April 2016 and reflect fiscal year
satisfactory level exists. Other measures, for
2015.
example, might be your organization’s past
results in this area or comparatives based on
The number of respondents, indicated by
organization staff size, industry or
“n,” is composed of the organizations that
geographic location.
responded to the specific benchmark.
Therefore, the number of peer organizations
Each table in the report contains
may vary from benchmark to benchmark.
customized benchmarks in aggregated form.
The percentile is the percentage of
There may be discrepancies between your
responses in a group that have values less
organization’s benchmarks and the average
than or equal to that particular value. The
or median numbers for a particular category.
median is the 50th percentile. The average, or
It is particularly helpful to communicate to
mean, is the sum of the responses divided by
stakeholders that just because your
the total number of responses.
organization has benchmarks that are
different from the average or median, it does
Some benchmarks are less frequently
not mean they are favorable or unfavorable.
collected by organizations or may be more
Rather, it may be the result of a particular
difficult to obtain. Some data are not
total organizational strategy, special
displayed when there are fewer than five
circumstances or other business initiatives
organizations for a specific metric.

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 SHRM CUSTOMIZED HUMAN CAPITAL
BENCHMARKING REPORT

ORGANIZATIONAL DATA

25th 75th
n Median Average
Percentile Percentile
Revenue per FTE 739 $65,502 $143,396 $271,450 $335,594
Net income before taxes
579 $0 $9,980 $61,882 $57,815
per FTE

* Metrics with a sample size (“n”) of less than 5 are not displayed.

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 SHRM CUSTOMIZED HUMAN CAPITAL
BENCHMARKING REPORT

ORGANIZATIONAL DATA

n Yes No

Succession plan 1,503 34% 66%

Positions Included Within the

Organization’s Succession Plan
n 493

Executive team 76%

Senior management 71%

Middle management 46%

Individual contributor:
25%
professional
Individual contributor:
12%
nonprofessional

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 SHRM CUSTOMIZED HUMAN CAPITAL
BENCHMARKING REPORT

SPAN OF CONTROL DATA

25th 75th
n Median Average
Percentile Percentile
4 direct 5 direct 8 direct 7 direct
Executive level 1,004
reports reports reports reports
4 direct 8 direct 14 direct 11 direct
Middle management 1,014
reports reports reports reports
Nonmanagement/individual 0 direct 0 direct 2 direct 3 direct
929
contributors reports reports reports reports
Nonexempt (hourly) 0 direct 0 direct 0 direct 2 direct
914
nonmanagement reports reports reports reports

* Metrics with a sample size (“n”) of less than 5 are not displayed.

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 SHRM CUSTOMIZED HUMAN CAPITAL
BENCHMARKING REPORT

HR DEPARTMENT DATA

25th 75th
n Median Average
Percentile Percentile
HR-to-employee ratio 1,803 0.84 1.33 2.29 2.32
Percentage of HR staff in
1,756 33% 50% 100% 56%
supervisory roles
Percentage of HR staff in
professional/technical 1,390 0% 36% 57% 38%
roles
Percentage of HR staff in
administrative support 1,469 0% 25% 50% 28%
roles

* Metrics with a sample size (“n”) of less than 5 are not displayed.

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 SHRM CUSTOMIZED HUMAN CAPITAL
BENCHMARKING REPORT

HR DEPARTMENT DATA

Reporting Structure
for the Head of HR
n 1,993

Chief executive officer (CEO) 36%

President/owner 19%

Chief operating officer (COO) 10%

Head of operating unit 5%

Chief financial officer (CFO) 13%

Head of administration/chief
4%
administration officer (CAO)
Other 12%

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 SHRM CUSTOMIZED HUMAN CAPITAL
BENCHMARKING REPORT

HR EXPENSE DATA

25th 75th
n Median Average
Percentile Percentile
HR-expense-to-
548 0.6% 2.0% 17.8% 15.0%
operating-expense ratio
HR-expense-to-FTE
695 $659 $1,667 $6,000 $10,211
ratio

* Metrics with a sample size (“n”) of less than 5 are not displayed.

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 SHRM CUSTOMIZED HUMAN CAPITAL
BENCHMARKING REPORT

COMPENSATION DATA

25th 75th
n Median Average
Percentile Percentile
Annual salary increase 1,143 2.0% 3.0% 3.0% 2.7%
Salaries as a percentage
580 25.0% 43.0% 60.0% 43.5%
of operating expense
Target bonus percentage
842 0.0% 0.0% 5.0% 4.7%
for nonexecutives
Target bonus percentage
809 0.0% 0.0% 15.0% 10.2%
for executives

* Metrics with a sample size (“n”) of less than 5 are not displayed.

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 SHRM CUSTOMIZED HUMAN CAPITAL
BENCHMARKING REPORT

TUITION/EDUCATION DATA

Not
n Offered
Offered
Tuition reimbursement 1,587 61% 37%

25th 75th
n Median Average
Percentile Percentile
Maximum
reimbursement allowed
763 $1,500 $3,000 $5,250 $3,998
for tuition/ education
expenses per year
Percentage of employees
participating in
729 1% 2% 6% 7%
tuition/education
reimbursement programs

* Metrics with a sample size (“n”) of less than 5 are not displayed.

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 SHRM CUSTOMIZED HUMAN CAPITAL
BENCHMARKING REPORT

EMPLOYMENT DATA

25th 75th
n Median Average
Percentile Percentile
Time-to-fill 1,192 20 days 30 days 47 days 42 days

Cost-per-hire 864 $500 $2,000 $4,500 $4,129

Average employee tenure 1,407 4 years 7 years 11 years 8 years

Annual overall turnover
1,159 6% 15% 25% 19%
rate
Annual voluntary
1,048 4% 10% 20% 19%
turnover rate
Annual involuntary
1,021 1% 4% 10% 8%
turnover rate

* Metrics with a sample size (“n”) of less than 5 are not displayed.

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 SHRM CUSTOMIZED HUMAN CAPITAL
BENCHMARKING REPORT

RETIREMENT DATA

Not
n Offered
Offered
401(k), 403(b) or similar plan 1,586 92% 7%
Percentage of organizations
1,348 84% 14%
providing employer contribution
Percentage of organizations with
1,018 62% 38%
automatic employee enrollment

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 SHRM CUSTOMIZED HUMAN CAPITAL
BENCHMARKING REPORT

RETIREMENT DATA

25th 75th
n Median Average
Percentile Percentile

Employee participation rate 1,054 45% 75% 90% 66%

Percentage of an employee’s
contribution matched by 666 50% 50% 100% 66%
the employer
Maximum percentage of
salary matched by the 972 3% 5% 6% 6%
employer

* Metrics with a sample size (“n”) of less than 5 are not displayed.

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HUMAN CAPITAL GLOSSARY OF METRIC TERMS, DEFINITIONS AND
CALCULATIONS

Statistical Definitions data when the average and median are

discrepant.
“n”
Average
The letter “n” in tables and figures indicates
the number of respondents to each question. The average is the sum of the responses
In other words, when it is noted that n = 25, divided by the total number of responses. It
it indicates that the number of respondents is also known as the mean. This measure is
was 25. affected more than the median by the
occurrence of outliers (extreme values). For
Percentile this reason, the average reported may be
greater than the 75th percentile or less than
The percentile is the percentage of
the 25th percentile.
responses in a group that have values less
than or equal to that particular value. For
Organizational Data
example, when data are arranged from
lowest to highest, the 25th percentile is the
point at which 75% of the data are above it FTE
and 25% are below it. Conversely, the 75th FTE is an abbreviation for full-time
percentile is the point at which 25% of the equivalent. Full-time equivalents represent
data are above it and 75% are below it. the total labor hours invested. To convert
part-time staff into FTEs, divide the total
Median (50th percentile) number of hours worked by part-time
The median is the midpoint of the set of employees during the work year by the total
numbers or values arranged in ascending number of hours in the work year (e.g., if the
order. It is recommended that the median is average work week is 37.5 hours, total
used as a basis for all interpretations of the number of hours in a work year would be
37.5 hours/week x 52 weeks = 1,950).

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Converting the number of employees to for succession planning, while others may
FTEs provides a more accurate include many executive, managerial and
understanding of the level of effort being supervisory-level positions.
applied in an organization. For example, if
two employees are job-sharing, the FTE Span of Control Data
number is only one.
Span of Control by Position Level
Revenue per FTE
Span of control by position level is the
Revenue per FTE is the total amount of average number of direct reports per
revenue received during an organization’s position.
fiscal year divided by the number of FTEs.
This ratio conceptually links the time and
HR Department Data
effort associated with the firm’s human
capital to its revenue output. If the revenue-
HR-to-Employee Ratio
per-FTE ratio increases, it indicates that
there is greater efficiency and productivity The HR-to-employee ratio provides a more
because more output is being produced per manageable way to compare HR staffing
FTE. If the ratio decreases, it indicates there levels between organizations. It represents
is less efficiency and productivity. the number of HR staff per 100 employees
supported by HR in the organization. The
Net Income Before Taxes per FTE number is calculated by dividing the
number of HR FTEs by the total number of
Net income before taxes per FTE is the net
FTEs in the organization and multiplying
income before taxes divided by the number
the outcome by 100:
of FTEs. It calculates efficiency by taking
net income before taxes, which is the Total number of HR FTEs x 100
difference between gross revenue and Total number of employee FTEs in the organization
expenses, and dividing the outcome by the
number of FTEs. Unlike revenue per FTE, Percentage of HR Staff in Supervisory
which has only one factor—revenue—net Roles
income per FTE comprises two factors and
Percentage of HR staff in supervisory roles
is best examined over time.
is calculated by taking the number of HR
staff in supervisory positions (FTEs) and
Positions Included Within the
dividing it by the total number of HR staff
Organization’s Succession Plan
(FTEs). Because positions in this category
Succession planning varies by organization, supervise others, they often are called
and for that reason, these data indicate supervisor, manager, director or above.
which positions organizations typically
include when conducting succession
planning. For example, some organizations
may include only executive-level positions

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Percentage of HR Staff in total HR expenses by the operating
Professional/Technical Roles expenses for a given fiscal year. This ratio
The percentage of HR staff in professional/ depicts the amount of HR expenses as a
technical roles is calculated by taking the percentage of total operating expenses,
number of HR staff in professional/technical which is an indication of the amount of
positions (FTEs) and dividing it by the total dollars an organization invests in its HR
number of HR staff (FTEs). Positions in this function.
category are generally exempt and do not
supervise others. They may be called HR-Expense-to-FTE Ratio
recruiter, benefits administrator, HR HR-expense-to-FTE ratio represents the
generalist, etc. amount of human resource dollars spent per
FTE in the organization. It is calculated by
Percentage of HR Staff in Administrative taking the HR expenses for a given fiscal
Support Roles year and dividing that number by the
The percentage of HR staff in administrative number of FTEs in the organization.
support roles is calculated by taking the
number of HR staff in administrative Compensation Data
support positions (FTEs) and dividing it by
the total number of HR staff (FTEs). Often, Annual Salary Increase
but not always, positions in this category Annual salary increase is the percentage of
are nonexempt. They may be called increase in salaries that an organization
coordinator, assistant, etc. expects to provide to its employees for a
given fiscal year.
Reporting Structure for the Head of HR
Reporting structure for the head of HR Salaries as a Percentage of Operating
indicates to what position within the Expense
organization the head of HR reports. Salaries as a percentage of operating
Occasionally, in very small companies, the expense metric is calculated by dividing the
head of HR may report to the CFO or head total amount of employee salaries by the
of an operating unit. In larger organizations, operating expense for a given fiscal year.
the head of HR usually reports to the
president or CEO. Target Bonus Percentage for
Nonexecutives
HR Expense Data
The target bonus for nonexecutives
represents the average percentage of base
HR-Expense-to-Operating-Expense pay that is targeted to be paid out in cash to
Ratio nonexecutive staff during a given year.
HR-expense-to-operating-expense ratio is
calculated by dividing the organization’s

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Target Bonus Percentage for Executives Employment Data
The target bonus for executives represents
the average percentage of base pay that is Time-to-Fill
targeted to be paid out in cash to executive Time-to-fill represents the number of days
staff during a given year. from when the job requisition was opened
until the offer was accepted by the
Tuition/Education Data candidate. This number is calculated by
using calendar days, including weekends
Tuition Reimbursement Prevalence and holidays.

Tuition reimbursement is a benefit that Cost-per-Hire

organizations offer to help pay back
employees’ educational expenses. Cost-per-hire represents the costs involved
with a new hire. These costs include the
Maximum Reimbursement Allowed for sum of third-party agency fees, advertising
Tuition/Education Expenses per Year agency fees, job fairs, online job board fees,
employee referrals, travel cost of applicants
The maximum reimbursement allowed for and staff, relocation costs, recruiter pay and
tuition/education expenses per year is the benefits, and talent acquisition system
maximum amount, in dollars, the costs, divided by the number of hires.
organization paid for tuition/education per
employee. These expenses do not include Average Employee Tenure
training expenses for seminars and other
activities that are not part of a college- or Average employee tenure is the average
university-level undergraduate or graduate length of employment in years for all regular
course(s). full- and part-time employees in a given
fiscal year. Typically, the more loyal
Percentage of Employees Participating in employees are to a firm, the higher the
Tuition/Education Reimbursement employee tenure. To calculate the employee
Programs tenure length, calculate the average number
of months all regular full- and part-time
The percentage of employees participating employees in a given fiscal year have been
in tuition or education reimbursement employed at an organization and divide that
programs is the percentage of employees number by 12.
who were reimbursed for their tuition/
education expenses. These do not include Annual Overall Turnover Rate
reimbursements for seminars and other
activities that are not part of a college- or Annual overall turnover rate is the rate at
university-level undergraduate or graduate which employees enter and leave a company
course(s). in a given fiscal year. Typically, the more
loyal employees are to a firm, the lower the
turnover rate. To calculate annual turnover,

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first calculate turnover for each month by the month and multiplying by 100: # of
dividing the number of separations during involuntary separations during month ÷
the month by the average number of average # of employees during the month x
employees during the month and 100. The annual involuntary turnover rate is
multiplying by 100: # of separations during then calculated by adding the 12 months of
month ÷ average # of employees during the turnover percentages together.
month x 100. The annual turnover rate is
then calculated by adding the 12 months of Retirement Data
turnover percentages together.
401(k), 403(b) or Similar Plan
Annual Voluntary Turnover Rate
This percentage represents those
Annual voluntary turnover rate is the rate at organizations that offer 401(k), 403(b) or
which employees enter and voluntarily leave similar plans to employees. A 401(k) plan
a company in a given fiscal year. To calculate allows employees to make tax-favored pay
annual voluntary turnover, first calculate deferrals toward retirement savings through
the voluntary turnover for each month by a payroll deduction plan. A 403(b) plan is
dividing the number of voluntary similar to a 401(k), but it allows employees
separations during the month by the average of certain tax-exempt organizations to
number of employees during the month and contribute pretax dollars toward
multiplying by 100: # of voluntary retirement.
separations during month ÷ average # of
employees during the month x 100. The Percentage of Organizations Providing
annual voluntary turnover rate is then Employer Contribution
calculated by adding the 12 months of
This benchmark reflects the percentage of
voluntary turnover percentages together.
employers that contribute to their
employees’ 401(k), 403(b) or similar plans.
Annual Involuntary Turnover Rate
Annual involuntary turnover rate is the rate Percentage of Organizations With
at which employees enter and involuntarily Automatic Employee Enrollment
leave a company in a given fiscal year. This benchmark reflects the percentage of
Involuntary terminations typically occur organizations that provide automatic
when the organization asks the employee to enrollment of employees into 401(k), 403(b)
leave the company. These terminations or similar plans.
usually occur as a result of poor
performance, layoffs or other reasons. To Employee Participation Rate
calculate annual involuntary turnover rate,
first calculate involuntary turnover for each This benchmark represents the percentage
of employees in an organization who
month by dividing the number of
involuntary separations during the month participate in a 401(k) or similar plan.
by the average number of employees during

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Percentage of an Employee’s
Contribution Matched by the Employer
As a way to encourage participation in the
401(k) or similar plan, employers often will
match some or all of the employee’s pretax
contributions. This benchmark represents
the percentage of an employee’s
contribution that the employer will match.

Maximum Percentage of Salary Matched

by the Employer
Although employers may match a
percentage of an employee’s contribution to
a 401(k) or similar plan, often there is a cap
or maximum amount that will be matched.
This maximum amount is typically
expressed as a percentage of the employee’s
salary.

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