Published: 15 February 2024
This research contains benchmarking insights from our 2023 HR Budget and Efficiency Benchmarking Survey. Human resources leaders can compare their HR function’s performance to that of their peers, assess cost optimization strategies and prioritize future HR investments.
The average HR functional spend as a percentage of revenue is 0.76%. Compared to other support functions such as finance (1.30%), IT (3.25%), marketing (7.5%) and sales (4.37%), HR receives one of the lowest investments.
HR accounts for 1.47% of organizational operating expenses on average.
HR functions spend $2,810 per employee annually, on average. The top spending areas are recruiting ($401 per employee), total rewards ($221 per employee) and L&D ($202 per employee). 8.4% of the total HR budget is allocated to HR technology, which is the top area in which HR plans to invest for the third year in
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