Pay · HR glossary

HR Financial Planning

HR financial planning estimates the money needed for workforce and HR activities and connects it with organisational plans. It includes assumptions about staffing, pay, services, development and change.

Example

HR and finance model the cost of planned hires, salary adjustments and a new learning programme before the annual budget is agreed.

What to keep in mind

Separate recurring costs from one-off implementation costs and explain timing assumptions. A vacancy approved for the year does not create a full year's salary expense if the employee starts later.

Further reading

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