Creating an HR Budget: What Categories to Include and How to Get Started?

Dear Seniors,

I have to create an HR budget for my company. Please let me know urgently how to proceed with it. What all categories should be included in it? If possible, could you provide me with a sample format for reference?

Thank you for your assistance.

Regards,
Hina

Hi,

1) Take inputs from your operations team about the manpower projections.
2) Make a tentative plan for hiring and spread it over the calendar.
3) Provide approximate salaries (average salaries in band) for every designation.
4) Consolidate this on a monthly basis.
5) Display the headcount and the cost on a monthly/quarterly basis and annually.

Hope this helps.

Regards,
Sathiya

Regarding the heads, add a separate column for Bonus and calculate an approximate percentage based on your previous years' bonus percentage to provide it as a projection. Thus, the different heads will be compensation & bonus. The remaining expenditures like office expenses, etc., can be added to the admin/finance budgets.

Regards,
Sathiya

Hi, I am adding a few more tips on the same.

1. Wage - Monthly, quarterly, yearly (including new hiring as per monthly plan).
2. Salary - Monthly, quarterly, yearly (including new hiring as per monthly plan).
3. Bonus projection in the month of disbursement.
4. Overtime, if any.
5. Uniform/Welfare fund, if any.
6. Hiring cost, if any.
7. Stationery cost.
8. Communication cost, if any.
9. Convenience cost, if any.
10. Training cost, if any.
11. Increment effect as per company norms.
12. Books & periodicals.
13. Subscriptions, if any.
14. Fees & other expenses, if any.
15. License renewal or other expenditure if it comes under HR.
16. Security and other expenses.

Hope this will help you to make a budget as per your company norms. Separate the expenditure on a monthly, quarterly, and yearly basis for better transparency.

Regards,
Arun

Attaching... Check it out, it may help.