Financial Skills for HR Professionals Budgeting and Budgetary Control for the HR Functions

Course Overview

This highly interactive course, with case studies from leading organizations and realistic HR budgeting simulations, will give you an introduction to the purposes of budgeting through to the preparation, monitoring, and control of a human resources budget. The course will cover case studies together with practical exercises from leading organizations to gain real hands-on experience of the budget process.

Case studies include

• Linking organizational finance to budgets
• Building a budget
• When budgets go wrong

Training Objectives

Participants you will be able to:

• •  Understand the purpose of a budget
  • Compile and interpret budgets
  • Understand the link between organizational finance and HR budgets
  • Identify the key components and cost factors in an HR budget
  • Monitor and control an HR budget
  • Understand budget metrics and their

Organisational Impact

The benefits to the organisation in delegates attending this training course and putting the ideas into practice are as follows:

• Improved leadership
• Greater productivity
• Improved morale and commitment
• The line management team (Supervisors and Team Leaders) will feel supported by the ER function
• The ER Function will develop closer working relationships with the line management team (Supervisors and team Leaders)
• Improved standards of performance and conduct throughout the organization

What Is A Budget?

• Introduction to organizational finance
• The link between budgets and organizational goals
• Cash flow forecasts
• Preparing a budget

The Purpose of Budgets

• Cost control
• Planning revenue and expenditure
• Monitoring plans against actual

Components of an HR Budget

• Manpower planning
• Compensation costs
• Recruitment and selection
• Training and development
• Performance management
• Administration
• The “cost culprits”

Building an HR Budget

• Successful forecasting
• Flexible budgeting
• Zero-based budgeting
• Counting the cost of HR

Budget Metrics for HR

• Budgets and Return On Investment (ROI)
• Budgets and discounted cash flows
• Budgets and Internal Rate of Return (IRR)

Measuring Financial Performance

• Monitoring budget performance
• Variance analysis
• Management by exception
• Accountability and responsibility