Definition, Calculation, Example

Why is headcount an important metric? How is headcount calculated and measured?

Headcount answer such questions:

- How many contractors vs. full-time employees work in a specific department?

- How big is the team?

- How many people should we have the next year to reach the goal?

- Are we overstaffed for a particular role?

An average headcount formula is outlined as follows:

$$
AVG\; headcount\; =\; \frac { \displaystyle\sum_{i=1}^n { { a }_{ i } } }{ n }
$$

where:

*n* – days total

*m *– first day

*a*_{i} – headcount at *i*-day

Average headcount of the firm for a week is 13.8.

$$
AVG\; headcount\; =\; \frac { 15\; +\; 13\; +\; 13\; +\; 14\; +\; 14 }{ 5 } \; =\; 13.8
$$

Metric.ai interface, employees section, headcount dashboard

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