Definition
Personnel intensity shows the ratio of personnel expenses to operating performance. The ratio is calculated as the quotient of personnel expenses and turnover. Every EUR generated or produced in a company is associated with X EUR in personnel expenses. Personnel expenses are made up of wages, salaries and social security costs. The ratio is also called the personnel cost ratio. A low ratio stands for good utilisation of the existing labour force or high rationalisation. Conversely, high ratios are common in labour-intensive areas (services).
Bettina Dirks
