HR function benchmarking report 2026

Most HR leaders are asked, at some point, to explain why HR costs what it costs, why the team is the size it is, and whether the function is keeping pace with the wider market. Answering those questions well depends on having a reliable point of comparison.

This report brings together publicly available benchmarking research on HR cost, staffing, recruiting and technology adoption into a single reference. It is designed to help HR and finance leaders understand where their function sits relative to the broader market, and to support budget, staffing and operating model discussions with evidence rather than assumption.

The report does not prescribe a particular delivery model. Instead, it sets out what the data shows about cost ratios, staffing ranges, recruiting costs and technology adoption, and offers a structured way to read that data against your own organisation.

What you will learn

• How HR spend compares as a share of revenue and operating expenses across industries
• What a typical HR-to-employee staffing ratio looks like, and why published benchmarks vary
• The cost of recruiting and replacing staff, including time-to-fill and cost-per-hire benchmarks
• How HR technology and AI adoption are changing, and what the adoption gap means in practice
• A self-assessment framework for comparing your HR function against the benchmark data

Who should read this report

• CHROs and HR directors reviewing HR budgets and operating models
• HR operations and shared services leaders assessing staffing and process efficiency
• CFOs and finance directors evaluating HR spend within the broader cost base
• HR business partners and consultants supporting HR transformation programmes

About this report

This report draws on publicly available research and benchmarking studies published by SHRM, Gallup, The Hackett Group, Gartner, Mercer and Deloitte. Each figure is referenced at the point it is used, with full citations and links to the original sources provided at the end of the report. Sign up to receive your copy.