Should HR Departments Get Funding? Let's Discuss How Much and How to Spend It

Should the HR Department get funds for their activities.

A) If yes, then how much amount per person.

B) How will you spend that amount.

C) How will the expense made by the HR department be recovered.

HR Budget Preparation

Not all HR budgets are the same. Depending on the corporation, what falls under the HR budget is at the discretion of the company. Preparing HR budgets may be complicated if your company is doing it for the first time. There are three categories that the majority of HR budgets include:

Internal Budgeting

This type of budgeting determines the amounts HR will spend during the budget year on various items such as payroll, office stationery, rubber stamps, Xerox expenses, office equipment AMC, etc.

Operational Budgeting

This includes hiring expenses, advertising, testing, travel expenses, etc. Expenditure from these earmarked funds will be treated as company running/business expenditure and need not be recovered from anyone. The sale price of products will include HR expenses/admin expenses as a component while costing the product.

"I have one doubt, that is, how can I get back that money without taking help from production and sales."

The need to get the money back is not clear. Finances of the company are dealt with by the finance section. They will have full details of sales, purchases, budgets, etc. The sale price covers all expenses and profit. So, if your company is profitable, all expenses incurred in running the company get recovered with a profit margin.