Struggling with HR Budget Planning for 2009? Seeking Advice on Salaries and Costs

Dear Seniors,

I need to make the HR budget for my Department, i.e., HR & Administration, including salaries, for the calendar year 2009. In fact, in this fluctuating market, I am really confused about formulating the budget. I am also the in-charge of my new plant coming up, which will have 127 managers and staff on the roll to be recruited in 2009. How should I formulate their salaries and related administrative costs?

Please advise and guide.

Regards,
Anju Prince

Dear Anju,

Budgeting is simply the forecasting of earnings and expense details for the next financial year. For your HR budgeting, you have to review your previous details. In brief, follow the following:

For Wage and Salary - Consider your present as well as future increased salary based on manpower planning, attrition rate, and average increments, etc.

Training Cost - Based on your planned training hours, faculty, and other expenses in this area.

Welfare Expenses - Follow your company policies, which may cover canteen, pantry, transportation, awards and incentives, uniforms, get-togethers, etc.

Apart from the above, you have to consider every expense related to HR and administration, taking into account an average inflation rate of 8 to 10%.

Thanks,

Arun Gupta
9312010127