Instead of HR budgeting as an accounting exercise, you can now use your budget to make decisions about pivotal priorities. Learn how to analyze their HR budget not just to account for costs, but to prioritize investments.
- If you want to make strategic HR investments,…it might seem logical to start with the HR budget.…Many leaders carefully analyze how HR spends money…and the cost of HR programs with questions like,…how many programs and activities…does HR deliver for every dollar spent?…Or, how can HR deliver more programs…to more employees at the same cost?…It's often possible to save thousands of dollars…with lower cost HR programs.…
In fact, most organizations probably spend…too little on pivotal talent…because they fixate on budget cuts.…But don't confuse an HR budget with an HR strategy.…Saving money on less expensive HR programs…may be short-sighted if they reduce the quality…of talent with the greatest impact.…Spending more money on HR programs is prudent…if the extra cost produces greater strategic payoff.…
It's just like strategic…investments of money and technology.…A strategic HR budget spends more…where they payoff is higher,…and less where the payoff is less.…You can create a more strategic HR budget.…To do that, you must target your HR spending…
- Arrange the questions of HR strategy in order of importance.
- Define “pivotal” within the context of the course.
- Identify three key questions that help clarify and focus organizational strategy.
- Define the term “bottleneck.”
- Name four characteristics a person might have that supports improved work performance.
- Explain the importance of an HR budget that aligns with HR strategy.
- Describe the three energy profiles and how they can be used to create a balance in HR strategy.