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Create an HR Budget

From burden to boardroom: transform your HR budget to become a strategic partner.

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Contributors

  • Brad Angus, Business Literacy Institute
  • Tony Dimnik, Queen’s School of Business, Queen’s University
  • Valerie Grubb, Val Grubb & Associates
  • Simon Horton, Imperial College, University of London
  • Irwin Jankovic, Metropolitan Water District of Southern California
  • Laura McAdam, Profitability NOW
  • John Winsor, Winsor Consulting

Your Challenge

  • HR is often not included in budget conversations, as they are viewed as overhead rather than as a business partner.
  • A lack of time and knowledge makes creating an effective budget process an intimidating task.
  • There is a struggle to demonstrate the value of HR investment.

Our Advice

Critical Insight

  • A clear budget process will make the case for HR’s proposed budget to key stakeholders and assist in tightening the gap between the proposed and approved budgets for prioritized HR initiatives.

Impact and Result

  • Examine and forecast HR strategic initiatives and operational costs.
  • Reduce HR budgetary gaps by assessing which strategic initiatives and operational costs can be eliminated and appeal for additional resources as needed.

Research & Tools

1. Prepare for HR budget planning

Become familiar with budgeting basics and create a timeline of milestones and deadlines for the HR budget.

2. Forecast HR initiative and operational costs

Categorize and prioritize initiatives, then forecast HR operational costs.

3. Assess and manage budgetary gaps

Reduce HR operational costs or appeal for additional resources to close budgetary gaps.

Guided Implementations

This guided implementation is a four call advisory process.

Guided Implementation #1 - Prepare for HR budget planning

Call #1 - Discuss any questions about the HR budgeting process and clarify budgeting terms and concepts.

Guided Implementation #2 - Forecast HR initiative and operational costs

Call #1 - Prioritize strategic initiatives and forecast their costs.
Call #2 - Forecast HR operational costs.

Guided Implementation #3 - Assess and manage budgetary gaps

Call #1 - Select an approach to limit budgetary gaps.