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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
The number of people employed at a point in time. Counts differ between reports because of what is included: interns, contract staff, people serving notice, those on long leave, and whether the count is taken on the first or last day of the month, so every headcount figure should state its rules.
Headcount is pulled at a fixed cut-off, usually the last day of the month, for management reports and for statutory registers. HR needs to state who is in the count: confirmed employees, probationers, people on notice, interns, contract staff through an agency.
Example with illustrative figures: a plant reports 240 employees, but the count includes 35 contract workers supplied by a contractor and 6 people serving notice. Finance may want 199 permanent staff for cost, while the safety team wants all 240 people present on site. Both are valid if labelled.
The mistake is using whichever number is handy for thresholds that have legal meaning. Applicability of several labour laws depends on how many people are employed under the specific law's own definition, so test thresholds against that definition, not the dashboard figure. Opening, closing and average headcount also differ, so name the one used in attrition rates.
Usually the number of employees on the rolls on a given date, regardless of hours worked. Reports should state whether people on notice, long leave or probation are included.
They are usually reported separately from employees. Some statutory thresholds count contract labour or all persons employed differently, so check the definition in the specific law.
Several laws, such as those covering PF and ESI, apply once an establishment crosses a set number of employees. Monitoring headcount by establishment shows when a new registration becomes due.
Headcount counts people; FTE converts the hours they work into full-time equivalents. Two half-time staff are a headcount of two but one FTE.
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