Revenue Based HR Plan - CiteHR
Rajsawster
Hr Specialist - Policy,compehsation &
Veena_J
Manager - Hr
Ks_murthy
Chief Manager(hr)

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Hello
I have got an assignment to prepare a revenue based HR Plan for 5 years. Need to forecast the No. of resources required and other aspects.
I am quite novice in revenue based plan and so would like to seek your inputs and guidance to develop one.
regards,
Veena

Hi Veena,

This is reltively new phenomenon to most of our HR in India. If I did not mistaken your interpretation of revenue base HR let me explain my understanding as follows.

Prepare your HR Budget for entire gamut of HR actrivities in the organization work out your last five years statistics for forcaste of next five years based on business plan.

You have to listout the components of your HR including:
1.Salary & Wages to different grades,
2.Annual Increments
3.Promotion with rise in salary percentage.
4.Allowances
5.Commission or profit sharing
6.Insurance
7.Other benefits
8.Training & Development
9. Recreational Activities
10. Annual Bonus
11.other items as per your organization practices I am unable to foresee such list.

You can work our budget and distribute anual budget to all listed account heads and accordingly prepare your revenue base HR plan. Futther you have to see the HR budget in context of Company budget and overall percentage of revenue generating process of your organization.

if you are new you can take help of Finance or Accounts experts he/she will behelpful in preparing good clear logical picture to justify your case.


Regards

Sawant








Hi,

I think you should seek clarification from your management regarding the concept. They are not looking at an accountants' view of HR plan. Nor are they wanting you to present the income and expenses statement of HR activities for the next 5 years.

I think they want you to present a bussiness model for the core activities / KRAs. Your mail is not giving away the bussiness in which you are operating. Assuming that you are a head-hunting organisation, I suggest the following should figure in your revenue plan:

- Major accounts you are targeting; their expansion plans; their estimated requirement of manpower; skill sets targetted; whether lower end skills or higher end skills; generic or specialist; what it means to your organisation in terms of revenue over a sustained period, i.e., 5 years; To be precise, from which assured sources you are going to be making money and how much.

What resources are required to be committed to generate that kind of revenues; profile and nature of resources. Money out go to acquire, nurture, grow and retain such resources.

In the end whether you estimate to make +ve or -ve contribution to the bottom line.
This revenue plan would give the top management inputs for making critical bussiness decisions:

-for course correction if required, with ref to their perception of the market trends
-for providing additional resources if market is booming or higher margins are expected from each transaction.
- for making withdrawal plans if the area of bussiness is seen to be making -ve contributions.

Hope this helps.

Hi Veena,
I believe that there is fundamental diffenence in the principles of revenue generating through Sales or Marketing and revenue based HR forcasting.
- Revenue generating thorugh business promotion activities is one independent function of Sales and Marketing Strategies. In other words is market analysis and market penetration strategies based presumptions and assumptions.
- Revenue generating through HR recources can be linked to per employee revenue generating ratio purely based on the business performance.In another words its postmartum business to reward employees.
Which is of your interest you have to decide in consultation with the management. From Novice MBA student you cannot expect market forecast which is done by the market analyst with 5 to 10 years market exposure.
Something is missing.
Warm Regards
Sawant

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