HR costs returning to pre-recession levels

Companies weighing the option of human resource outsourcing have a key indicator to assist in decision making, thanks to data from PricewaterhouseCoopers/Saratoga's 2010-2011 U.S. Human Capital Effectiveness Report.

The data noted an increase in the cost-per-employee rate, climbing to $1,569 per employee in 2009, nearing the $1,610 per employee rate which existed before the recession.

The rising cost-per-employee amount signifies more investment in human resources employees, including benefits, compensation, travel and other expenditures, PwC Saratoga director Shebani Patel noted in the survey release.

As company budgets leveled off over the previous two years, the number of human resources staff decreased, causing the price per employee to climb $107 from 2008 to 2009, according to

"Following a big dip in 2008 in HR investment per-employee, we're seeing a rebound back to historical levels," said Scott Pollak, a director at PwC Saratoga.

The option of human resource outsourcing is buoyed by the decrease in HR representatives per employee. According to the report which surveyed 300 companies in 12 sectors, the average business has one HR rep for every 97 employees in 2009 - a jump from one HR employee for every 85 workers in 2006. 

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