Create an HR Budget
From burden to boardroom: transform your HR budget to become a strategic partner.
- 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.
Create an HR Budget
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.
About McLean & Company
McLean & Company is an HR research and advisory firm providing practical solutions to human resources challenges via executable research, tools, diagnostics, and advisory services that have a clear and measurable impact on your business.
What Is a Blueprint?
A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your HR problems.
Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.
Need Extra Help?
Try Our Guided Implementations
Get the help you need in this 3-phase advisory process. You'll receive 4 touchpoints with our researchers, all included in your membership.
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.
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