The HR-to-employee ratio is a two-step calculation plus a set of benchmark numbers you have to keep straight.
The formula
HR-to-employee ratio = (HR FTEs / total FTEs) x 100, expressed as HR staff per 100 employees.
Worked example: 750 FTEs, 9 HR FTEs.
- 9 / 750 = 0.012
- 0.012 x 100 = 1.20 HR staff per 100 employees
Second example: 1,120 FTEs supported by 14 HR FTEs.
- 14 / 1,120 = 0.0125
- 0.0125 x 100 = 1.25 per 100
The errors are always the same two: inverting the ratio (dividing employees by HR staff) and misplacing the x 100 scaling. Divide HR by total, then multiply by 100.
SHRM's 2022 benchmark numbers
- Average: 1.7 per 100 employees
- Median: 1.11 per 100 employees
- 25th percentile: 0.42 per 100
- 75th percentile: 2.02 per 100
This distribution is skewed, so the average and the median differ markedly - which is exactly why the exam pairs them. If the question asks for the average, it is 1.7; if it asks for the median, it is 1.11. That mix-up is the most frequent miss in this unit.
Comparing against the benchmark
Compute first, then compare. 1.25 per 100 exceeds the median of 1.11, so that group is above the median. Answer options will offer you the median itself (1.11) or the 75th percentile (2.02) as if they were your computed figure - both are restatements of the benchmark, not calculations.
Carry this in: do the division, scale by 100, then say above or below. And keep 1.7 average against 1.11 median firmly apart.