Bengaluru, May 20: As part of the International HR Day initiatives, greytHR, a full-suite HRMS platform provider, has released the 2024 HR Ratio Insights Report for India. The report explores how companies across various industries and sizes manage and invest in their human resources.
Analyzing HR-per-employee ratios from 10,000+ Indian businesses, greytHR uncovered their diverse approaches toward HR management and the implications of these strategies. An essential tool in workforce planning, the HR ratio is calculated with this formula: Number of HR employees / total number of employees x 100. The study involved anonymized and aggregated data, ensuring no personal information was accessed. Human Resource Professional Day Date, History and Significance: All You Need To Know About the Day Dedicated to HR Professionals.
As per the study, knowledge industries, which rely heavily on skilled knowledge workers, show higher HR ratios. In IT/ITeS, the HR ratio is 3.91 for every hundred employees, and in Business Services, it is 3.69. In contrast, it is 0.67 in Hospitality and 0.89 in Retail. Both these industries often require different skill sets, and hence the variation in HR ratios.
When it comes to company size dynamics, smaller companies (fewer than 250 employees) exhibited higher HR ratios. The HR ratio for companies with 101-250 employees is 4.43, while companies with 1001-9,999 employees is 1.34. As companies grow, there's a visible trend of decreasing HR ratios, partly due to the adoption of automated systems.
"While our report focuses on the current state of HR ratios, the role of emerging technologies, like AI and automation, in shaping future HR practices cannot be overlooked. Therefore, the current scenario demands a new breed of HR professionals who are strategists first, equipped to harness AI for deeper employee engagement and strategic foresight," stated Girish Rowjee, Co-founder and CEO, greytHR.
This study by greytHR reveals how HR ratios differ across sectors and company sizes, and the varied roles played by HR. The findings show that very high and very low HR ratios can impact employee turnover. Hence, optimal HR staffing levels are crucial for maintaining employee satisfaction and organizational stability.
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