PERSONNEL BUDGETING
Personnel budgeting is a powerful financial tool that helps to assess the costs associated with personnel management. Personnel budgeting is intended to control the value of human capital in return for controlling the activities of the service personnel. Personnel budget is developed in parallel with the process of determining the objectives of the Company, and the allocation of funds for those or other measures is regulated by the strategy of personnel management. In this approach, the distribution of costs is carried out more objectively and purposefully, taking into account the priority and necessity. HR strategy and personnel management are two interconnected areas that depend on many things: whether the company will retain its competitive advantages, whether it will be able to enter a new market at the planned moment, whether it is capable of developing. Therefore, in the personnel budget, in addition to current and personnel costs, it is necessary to provide for the costs of solving individual problems in the field of human resources management that can affect the sustainability or business development.
Task of Personnel Budgeting:
- evaluation of human resources plans in terms of achieving the Company's objectives, its overall fiscal policy and personnel costs
- assessment of the complexity of work on the implementation of the plan in the field of personnel management
- calculation of personnel costs and determination of cost of activity for each planned direction
- budgeting staff costs
- protection and approval of the budget
- control over budget execution