- Every organization has unique processes and timelines that impact how the budget is created and allocated to departments, often leaving HR unsure about its role in financial decision making.
- Traditionally, HR leaders have had minimal input into organizational budgeting due to perceptions of HR as a necessary expense or cost center rather than a strategic partner.
Our Advice
Critical Insight
- Organizations that fail to identify the talent implications associated with strategic investments risk prioritizing short-term financial gains while ignoring long-term consequences.
Impact and Result
- Outline the organization’s budgeting process and identify key decision-makers and timelines.
- Develop HR’s role as a strategic partner to influence internal stakeholders and align HR spending with strategic goals and objectives.
- Create an HR budget that aligns HR spending with organizational strategy.