1. Human Resources
  2. HR Operations & Budgeting

Administration Cost per Employee


The average cost incurred by the HR department in managing administrative tasks for each employee. Understanding this value helps companies optimize HR-related expenses and determine if there is room for efficiency improvements in HR processes or if additional resources are needed.


Total HR Administrative Costs / Total Number of Employees


If HR administrative costs for a year are $100,000 and there are 200 employees, the Administration Cost per Employee would be $500.