- Laura McAdam, President, Profitability Now
- Tony Dimnik, Professor, Queens University
- Simon Horton, Lead Trainer, Negotiation Mastery
- Valerie Grub, Consultant, Val Grub & Associates, LTD
- Over 40% of organizations do not have a formal HR budget. Those that do have budgets suffer from poor data and declining resources.
- Attempts at creating an effective HR budget suffer from a variety of underlying challenges, including: a view of HR as overhead rather than a business partner, a lack of time/knowledge to create an effective budget, and a struggle to demonstrate the value of HR investment.
- A well-defined process – such as the one suggested by McLean & Company – combined with a detailed project timeline will alleviate the stress associated with HR budgeting.
- There should never be such a thing as an HR initiative, just business initiatives; every dollar spent in HR should help the business achieve its goals.
- Consult with stakeholders before, during, and after budget creation for best results.
Impact and Result
- Determine the gaps between business needs and current HR initiatives.
- Use historical data to forecast next year’s HR operational costs.
- Define HR projects that fill business gaps and forecast their costs.
- Negotiate appropriately in order to maintain stakeholder satisfaction.
This guided implementation is a four call advisory process.
Call #1 - Prepare for HR budget creation
Discuss any questions you have about McLean & Company’s HR budgeting process and clarify budgeting terms and concepts.
Call #2 - Link HR initiatives to business goals
Analyze the organization’s strategy, the results of your HR Business Vision survey, and the gaps identified between business needs and available HR resources.
Call #3 - Determine HR operational costs and determine HR project costs
Discuss the HR Budget Planning and the HR Project Value Analysis tools, the selection and prioritization of your projects, and any issues discovered during the meetings with your HR team.
Call #4 - Create and refine the budget proposal
Identify stakeholder communication strategies to use during the budgeting process, negotiate to reduce the severity of budget cuts, and mitigate the damage of budget cuts.