Budgeting and Budget Control of the HR Function
14 - 15 March, 2011, Auckland | 5 - 6 April, 2011, Wellington
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.
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
Dave Stewart, Managing Director, Human Value
Dave Stewart, Human Value Dave has over 20 years experience in the
employment and HR market. During this time he has been General Manager
of three of New Zealand’s largest consultancies. Now Managing Director
of Human Value, his expertise, market knowledge and networks add value
to any organisation's human resource decisions.
With his
extensive knowledge and exposure to changes within the labour market
Dave takes a proactive approach to helping companies anticipate and
manage their place in the future world of employment. His knowledge of
the dynamics and diversity in our changing work population helps
companies recognise what drives their employees and how to best
challenge, reward and retain talent.
Dave Stewart is also
part-time Managing Director of Te Hopai, a charitable Trust providing
care to the aged and the needy. Dave has been a Board Trustee of the
EEO Trust since 2001 and has judged the prestigious Work & Life
Awards in 2002, 2006, 2007 and again in 2008.
Dave Stewart is also facilitating:
In-house Training
Prices and Registration
| Dates | Location | Standard price | Early bird price* | |
|---|---|---|---|---|
| 14 - 15 March, 2011 | Auckland | $1995 + GST | $1895 + GST (EB Date: 24 January, 2011) | Register |
| 5 - 6 April, 2011 | Wellington | $1995 + GST | $1895 + GST (EB Date: 24 January, 2011) | Register |
* Early bird price available when you register and pay before the dates listed.
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