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How can HR quickly offend the whole company?
The answer is to do budgeting.
How can HR do it most completely offend the whole company?
The answer is to budget when the business is adjusted.
At the end of the year, the busiest time for human resources begins.
Work should be inventoried, experience should be summarized, performance should be commended, and the most important thing is the annual beginning of the year drama, and human resources budget management should be kicked off.
It is difficult to say that budgeting is difficult in two points:
First, balance the interests of all parties:
Employee: After a hard year, next year you have to raise wages, don't beat GDP, you have to keep up with CPI, right?
Finance: To control costs, the total budget next year is the same as this year...
Business: Next year I'm going to do the big ticket, that recruits...
Boss: Well, it's all my money spent...
Second, it is reasonable to calculate:
In the case of limited resources, who to give to and not to give to whom to take the basis, not to mention the same desire between the top and the bottom, at least to convince people. Usually in the case of steady improvement of business, the budget will not be particularly scratched, as long as the growth rate of input costs is lower than the growth rate of business, no one will be too harsh.
However, in the context of business adjustment, in the face of uncertain income expectations, how should the budget of human resources be formulated?
Regular human resources budget content, a large number of online searches, this article will not be "nature's porter".
Based on the perspective of data analysis, we talk about the content to pay attention to in the hr resources budgeting process.
1
How to budget for human resources without goals
The most common scenario in this case is that the boss may not have thought of the goal, so let you "calculate the first version to see" .
Therefore, the purpose of the budget at this time is to provide budget reference suggestions for the boss and other senior executives, which can usually be carried out according to the following ideas:
1, do not let go of yourself, talk about human resources budget on human resources
Based on previous surveys, less experienced HR workers often propose a more comprehensive framework at this stage: to meet the needs of employees to increase compensation and benefits, to consider CPI growth factors, to enrich recruitment channels, to make up for the lack of training in the previous year... Typically, hr budgets are higher than in the previous year.
In ordinary years, such a budget plan can be formulated, as long as it can ensure that the growth rate of the business is greater than the growth rate of costs, this kind of plan is not undesirable. However, in the period of business adjustment, in the face of an uncertain market situation, the formulation of such a plan is rash.
2, there must be no goal, but also have principles
This is an important reason to emphasize that HR should understand the business.
Not to mention the long way, the growth of the scale of the industry in the next year, human resources workers must have a general judgment. If you can, indirectly understand the performance goals and budget trends of other enterprises through third-party channels, as far as possible, and prepare information for the future and business PK.
This step is a mapping of business needs.
3, talk about large numbers, on the model
Untargeted human resources budgets do not need to take into account particularly many factors.
In fact, it is only necessary to consider a few first-level indicators in the human resources budget, or the human resources budget of major regional companies. There are two reasons: first, in the absence of goals, most of the budget is based on subjective inference, the more you enter the subdivision indicators, the more discussion, the more entanglements, the more compromises; second, even if the subdivision indicators have also made a budget, often the error is also very large, and the accuracy of the estimated main indicators seems to be similar.
Therefore, we recommend that when there is no target budget, a concise and clear model should be used to reflect the main factors that need to be considered in budget formulation and the total budget amount. To put it bluntly, this is a beautiful "target", the role is to guide the boss, finance and business bricks, fully discuss, stimulate thinking.
4, to talk about conditions
If the budget plan is to do a beautiful job, it must be combined with the scene. Even if there is no clear goal of the HUMAN budget, its models, indicators, data are based on the HR workers' judgment of the current business. Therefore, it is necessary to emphasize the conditions under which the budget is formulated, at least to ensure that the business does not fall off the chain...
2
Hr resource budgets based on business objectives
1. Inventory of available resources
The overall goal is usually set directly by the boss, don't rush to challenge it.
There is a line in "Bright Sword": If there is a division, he Li Yunlong dares to fight Taiyuan! The reality is that no one can afford to fight a few affluence wars. The human resources budget is only part of the financial budget, so it is necessary to be clear about the ceiling of the financial budget and allocate resources in control.
This step is to map out the supply of resources.
2. Inventory of business objectives
It's an exciting time when HR workers have the courage to talk to each business unit about "What are your goals?" "How?" "What HR support is needed?"
At this time, the human resources worker is more like a shrewd investor, to choose, to judge: which goals are more valuable to the enterprise, which goals are easier to achieve, which goals are worth investing more human resources.
In this process, human resources workers should cooperate with finance, pull the business into the real scene, and repeatedly deliberate on the rationality of the goal and the way to achieve it. Allocation of resources based on more reasonable goals and paths, which is the most controllable part of human resources over whether the budget is accurate, and the subsequent work is to ensure the effective implementation of the decision at this moment, or to make up for the carelessness of this moment.
This is also the moment when HR workers embody their profession.
How can it be confirmed that the current budget programme meets the performance targets?
First, "I prejudged your prejudgment"
Human resources workers with rich work experience may not have a better understanding of the market situation in the real estate industry than the business. Combined with the intellectual support of internal strategy, operation, organizational development and other departments, and the data support of external third-party research institutions, human resources workers can provide decision-making assistance for business personnel and make full preparations for the budget if they can make full use of these resources.
Second, judgment is made through cross-analysis of data
Take the cross-analysis of labor cost and equity sales as an example. Based on data analysis in previous years, the ratio of labor costs to equity sales expenditure in the real estate industry is usually between 1.5% and 3.0%. Therefore, HR workers can use the current budget labor costs to compare with business goals to verify whether business goals and HR budgets match. If the data reserve is sufficient, the labor cost and equity sales ratio of the past three years can be compared to further increase the accuracy.
Third, performance projections are made from the performance data of the previous year
If there is no important technological breakthrough or management level improvement, the organizational effectiveness of mature enterprises should be stable and continuous growth. Therefore, human resources workers can use the per capita sales and per capita net profit data of the previous year, combined with the budget staffing, to judge whether they can achieve business goals.
3. Tracking of business objectives
In order to ensure the accuracy of human resources budgets, on the one hand, it is necessary to consider comprehensively in the budget formulation process, and on the other hand, it is necessary to establish a set of early warning mechanisms.
Be aware that costs tend to be front-loading compared to revenue. From the experience point of view, in the case of medium-term business goals are not achieved, most enterprises choose to continue to increase investment rather than control cost expenditure, which is also the main reason why cost control is out of control.
Therefore, the usual practice is to strengthen the monitoring mechanism of the budget, and enterprises with strong data management level can achieve monthly and quarterly data review. What is the progress towards business goals? Is the input of human resources in line with business objectives? What's next? Does the budget need to be adjusted when the progress of business goals is lagging behind? Do you want to adjust your business objectives and budget plan?
Enterprises with insufficient data level should at least achieve monthly monitoring of total labor costs or major human resource budget indicators, such as total salary, recruitment costs, and training costs.
Some companies have also adopted the practice of adjusting the budget expenditure cycle, such as dividing the budget into structural expenditures and one-time expenditures. Labor costs and other parts that need to be spent on a monthly basis are used as structural expenditures, and the part of training expenses that are spent according to the plan is used as a one-time expenditure, and the budget of one-time expenditure is controlled in the second half of the year; for example, the labor cost is split into two parts of solid float, and the floating bonus part is put into the year-end expenditure... These practices increase the space for human resources to adjust the budget, but need to consider adapting to business needs, the first half of the year is an important node for recruitment, and it is meaningless to do new employee training in the second half of the year, but also to take into account the resistance of employees and the actual pace of work.
To summarize, develop hr budgets from a data analytics perspective:
1. The formulation of the budget should have a scenario, that is, the budget should match the business objectives;
2. Use the model to determine the framework, and use the data to repeatedly verify the rationality of business objectives and budgets.
Finally, the business perspective of human resources should be emphasized.
It makes sense to discuss the accuracy of the HR budget when business objectives are achieved.
If the hr resources budget is 100% accurate and the performance target is only 80% achieved, from the perspective of input-output, does the hr resources investment exceed expectations? And the more accurate it is, the more it goes beyond.
On the contrary, the investment of human resources exceeds the established budget target, and it is quite worthwhile to exchange for a more substantial improvement in performance.