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Employee Growth by Function

What is Employee Growth by Function?

Employee Growth by Function measures how each organizational function is forecasted over a 1-5 year period. This hiring plan is typically factored into the financial model.

Alternate names: Forecasted Headcount & Hiring Plans

How to calculate Employee Growth by Function

ƒ (Count(Employees in Function at End of Period) - Count(Employees in Function at Start of Period)) / Count(Employees in Function at Start of Period)

Example

Say your company has 10 employees in marketing at the start of the year, and this number grows to 14 by the end of the year. Your Employee Growth by Function, marketing in this case, would be (14 - 10) / 10 which is 40% growth.

More about this metric

Employee Growth by Function measures change in full-time employee count by function. This is a headcount metric factored into budgeting and forecasting the financial obligations of the company. In conjunction with metrics such as Cost per Hire and Revenue per Employee, this metric can provide a robust view of the return on investing in employees and growing employee count.

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