What is the Manager Headcount Ratio?
The Manager Headcount Ratio compares the number of employees to the total number of managers as a ratio. Managers are defined as employees classified as Manager within the EEO1 job classification of "Officials and Managers" and excludes project managers and supervisors who predominantly engage in the same activities as the employees they supervise.
What is the average value of Manager Headcount Ratio?
According to the Saratoga Workforce Index, the national average Manager Headcount Ratio in 2022 was 16 employees/per manager.
What is the Manager Headcount Ratio by industry?
The Manager Headcount Ratio has a high variance across industries. If you need benchmarks for your specific industry, please contact the Saratoga team.
Where can I get Manager Headcount Ratio benchmarks?
The annual Saratoga HR and Workforce Benchmarking Study releases the Manager Headcount Ratio benchmark for over 20 different industries each year. The national average is released as part of the annual Saratoga Workforce Index.
How is the Manager Headcount Ratio calculated?
The Manager Headcount Ratio is calculated by dividing the total number of employees by the total number of manager level employees in the organization.
What does a low Manager Headcount Ratio mean?
A low Manager Headcount Ratio might indicate a top-heavy organizational structure that may arise from insufficient individual contributors or from over-promoting staff into management positions. It could also indicate high turnover across managers due to a common dissatisfaction with an aspect of their shared work experience or other elements such as compensation and benefits.
What does a high Manager Headcount Ratio mean?
A high Manager Headcount Ratio can be a result of rapid growth of individual contributors. It may also indicate that you have sufficient staffing resources to manage your workforce and day-to-day operations.
What other benchmarks are relevant to Manager Headcount Ratio?
Need industry-specific benchmarks?
We provide these values as a reference point for discussions. However, given the high variance across industries, sizes and revenue, these national averages should NOT be used to make important business decisions or used in any formal reporting.
If you intend to use benchmarks for business decisions, please join Saratoga as a full member so you can have access to more specific comparison groups for each industry, revenue, size, profit/non-profit status and more. With a full membership, you’ll have access to over 1,000 metrics that are much more accurate and specific than a national average. The membership process is relatively simple, mostly automated and reasonably priced with a clear ROI.
Referencing Saratoga Workforce Index Data
If you choose to refer to these metrics in any of your materials, whether internally or externally, we ask that you include the following statement:
Excerpted from the Saratoga Workforce Index. © 2023 PricewaterhouseCoopers LLP, all rights reserved. Data is for discussion purposes only and cannot be used for investment decisions or financial evaluations.
You may include up to five metrics in any internal or external publication without any additional permissions. Contact us at [email protected] if you want to use more than five or would like to reproduce the Saratoga Workforce Index in its entirety.
About Saratoga
Saratoga workforce and HR benchmarks provide reference points for executive-level discussions, context for people dashboards, and data to inform workforce and HR decisions. Hundreds of companies across over 20 industries trust Saratoga each year to supply over 1,000 validated workforce benchmarks around turnover, diversity, staffing, productivity, efficiency, fairness, and more.
Request a demo of Saratoga to get access to industry-specific benchmarks for up to 1000 benchmarks.
