Skip to content

 

Staff Budgeting

Staff budgeting is an integral part of the strategic planning process for identifying potential workforce issues in advance.  It ensures you will have the skill base to meet your objectives.

Budgeting for your workforce incorporates a number of considerations such as:

  • Identifying future workforce needs and capabilities (including skills, knowledge and expertise)
  • Analysing current staff numbers and capabilities
  • Estimating your turnover costs
  • Analysing your average retention rate
  • Identifying the gap between current and future workforce needs
  • Determining whether you will need temporary or permanent skills for future requirements
  • Budgeting for salary increases
  • Factoring in recruitment expenses for new hires/replacements

When one or more of these are overlooked, the result can potentially have a significant impact on your bottom line.

Your finance or HR department should be able to help you determine the formula to calculate average retention rates, turnover costs and identify typical permanent and temporary employee on-cost patterns.

On-cost patterns may include things like:

  • Superannuation
  • Workers compensation
  • Payroll tax, FBT
  • Annual leave
  • Long service leave

The best thing you can do is to make sure you get your headcount right. Budget for all employees, open positions and planned new hires for every month you expect to pay the wages.

 

OR to obtain a complimentary printed copy of the Recruitment Survival Kit,  contact your nearest Kelly Services branch.