Variable versus Fixed HR cost ratio

Definition

Especially with many recent economic turbulent periods, companies need to plan and structure their costing well to weather the storm. Thus HR needs to determine what costs are absolutely necessary to incur for day-to-day activities versus what is cyclical or ad-hoc in nature. Thus things like determining the mix of permanent vs. temporary/contract labour falls into this ratio monitoring

Formula

Tags

contract, labour, cost

Metadata

Category: HR ratios · Added: May 17, 2026