Administration Cost per Employee
Money
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.
Formula
Total HR Administrative Costs / Total Number of Employees
Example
If HR administrative costs for a year are $100,000 and there are 200 employees, the Administration Cost per Employee would be $500.