What are the revenue per full-time equivalent (FTE) and HR expense per FTE ratios for the fiscal year? (Revenue = $500M, 2,000 FTEs, 60% of $300M in expenses is HR expense = $180M)

The correct answer is D. $250,000 and $90,000. Revenue/FTE = $500M ÷ 2,000 = $250,000 HR expense/FTE = $180M ÷ 2,000 = $90,000 These financial ratios are vital to SPHR roles when justifying ROI of HR functions and benchmarking workforce productivity.

Business Management & Strategy

Question

Options

A$120,000 and $72,000
B$150,000 and $72,000
C$200,000 and $90,000
D$250,000 and $90,000

How the community answered

(34 responses)

A
15% (5)
B
6% (2)
C
3% (1)
D
76% (26)

Explanation

Revenue/FTE = $500M ÷ 2,000 = $250,000 HR expense/FTE = $180M ÷ 2,000 = $90,000 These financial ratios are vital to SPHR roles when justifying ROI of HR functions and benchmarking workforce productivity.

Topics

#HR metrics#revenue per FTE#HR expense per FTE#workforce analytics

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