HR Budgeting

Outline

Module 1: Understanding Staff Costs and Budget Planning

A. Introduction to Staff Costs

I. Definition and importance of staff costs in organizational budgets
II. Identifying the most common staff cost items (e.g., salaries, benefits, taxes, insurance)

B. HR Budget Planning Process

I. Overview of HR budgeting methodologies
II. Steps for efficient HR budget planning
III. Tools and systems used in HR budget management

Module 2: Salary Gap Analysis and Compensation Strategy

A. Conducting a Salary Gap Analysis
I. Definition and purpose of salary gap analysis
II. Steps to perform an effective salary gap analysis

B. Compensation Strategies
I. Linking compensation to performance and organizational goals
II. Balancing internal equity and external competitiveness

Module 3: Merit Pay Matrices and Performance Linkage

A. Traditional vs. Advanced Merit Pay Matrices
I. Characteristics of traditional merit matrices
II. Key features of advanced merit pay matrices

B. Designing an Advanced Merit Matrix
I. Steps to create a matrix Linking Pay to Performance within Budget Constraints

Learning Objectives : 

By the end of the workshop, participants will be able to:

• Know the concept of staff costs and identify the most common cost items.
•  Understand the process of HR budget planning and the methodologies involved.
• Learn the best practices and recommended steps for preparing an efficient HR budget.
• Understand best practices in forecasting the most common HR cost items.
• Learn how to conduct a salary gap analysis.
• Differentiate between traditional and advanced merit pay matrices.
• Learn how to link pay to performance while aligning it with the budget.
• Design an advanced merit matrix.