The headcount benchmarking is one of the favorite topics of the top management. Generally, it is a good idea to search for the best practice in the area of the headcount management, but the headcount benchmarking in the recession is not that good idea at all.
The headcount benchmarking is very dangerous as it describes the industry standards, but it does not show the best in class practice in reality. The headcount benchmarks speak about the number of employees in different units and functions. But the headcount benchmarks do not speak about the quality of processes provided and their importance for the whole organization.
The headcount benchmarks are about a standard organization, mainly when the median and average practices are published with no additional details. The top management can take the headcount benchmarking as the basis for the headcount reduction and it can be a mistake.
Additionally, when the recession starts, the headcount benchmarks are obsolete within weeks. All the organizations start the race for the better efficiency. The businesses have to find their own creative way to decrease headcount and staying competitive on the new market.
In the beginning, the headcount benchmark can provide some basic guidance to the top management and the HRM Function, but the organization cannot take the headcount benchmarks as the goal of the whole effort.
