About

COURSE OBJECTIVE
• Linking budgets to performance indicators, HR strategies and objectives
• Control, monitor and prepare human resources budget
• Gain hands-on experience of the budget process
• Accurately report expense and return on the HR budget

“Dave was a great presenter. He was engaging and made things easy to understand. He covered a wide range of topics relating to HR which was just what I needed to get a good understanding of my current role and what it entails.”
Kelly Frew, HR Administrator, Russell McVeagh

In order for HR to be taken seriously its contribution needs to be viewed as added value, not cost. The challenge for HR professionals is how to communicate this message effectively so as to gain executive and organisational buy-in for strategic HR goals.

The first step in flipping cost to value is to understand the budgeting process. HR needs to work alongside the business to accurately budget and forecast hard and soft costs and demonstrate the value of staff investment. HR Managers need to be attuned to the business language and demonstrate both capability and foresight in supporting organisational objectives. By adopting a profit centre approach HR can create acknowledgement and acceptance at the executive level.

Who should attend:
• HR Managers
• HR Directors
• HR Officers
• HR Supervisors
• HR Analysts
• Head of HR
• HR Specialist
• Training Manager
• Financial Manager
• Administration and Office Managers

Outline

Overview of Budgeting and Budget Control
• Introduction to budgets
• Purpose and importance of budgets
• Establish the link between organisational finance and HR budgets
• Aligning HR budget with corporate strategy and HR objectives/strategy

Linking HR to organisational success
• How investment in HR increase productivity and quality
• Understanding what drives engagement
• The service profit chain
• Cost of turnover

Staffing and Budget Metrics for HR
• Hard HR Metrics
  - Reading the bottom line – staff cost as an overall % of expenditure
  - Return On Investment
  - Revenue per people cost dollar
  - Discounted cash flows
  - Internal Rate of Return
  - Metrics for measuring results

• Soft HR Metrics
  - HR time savings
  - HR process reengineering
  - Employee satisfaction (EVP)
  - Productivity
  - Change strategies
  - Retention strategies

HR Department Costs
• Recruitment
• Training and professional development
• Compensation costs
  - Payroll
  - Bonus
  - Increment
  - Recruitment
  - Holiday liabilities
• Measuring the total cost of HR
• The cost of change strategies

Fundamentals of the Budgeting Process
• The budgeting cycle
• Gathering the facts
• Understanding the business strategy 1/2/5 years
• Building capability
• Constructing a budget to fit with your organisation
• Estimating costs and revenues
• The control process
• Updating budgets and forecasting

Forecasting
• Effects of Salary and wage increases on overall salary bill
• Costing of collective contracts
• Costing of individual contracts
• Legislative impacts

Developing the HR Budget
• Understanding cash flow
• Forecasting and budgeting
• Types of budgets
  - Flexible budgeting
  - Zero-based budgeting
• Budget preparation

Accountability
• Why it’s important to accurately collect data and report costs
• Ensuring that the collecting, compiling, storing and reporting data is consistent with established practices

Facilitator

In-house Training