Human Resources Planning Budgeting Capstone Project

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A training that allows a company's employees to avoid violating new regulations, for example, can save the company both directly in terms of money (such as in fees that are not levied) but also save the company indirectly in terms of not losing good employees to other companies that act in more proactive ways or by losing public confidence because it acts in ways that indicate it does not hold public safety as its highest concern (Human resources reports and essays, 2006).

If these trainings are conducted at a site other than the company site, there will be associated costs such as travel costs and registration fees. The HR Department may also have to cover the costs of conference registration or (if in-house) of speakers or consultants.

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Already touched on above are the kinds of costs that are most typically thought of as having to be accounted for in a HR Department budget: employee salaries and the costs of other forms of compensation. These include most importantly healthcare costs (including -- or not -- dental and vision insurance) as well as (often) life insurance. Other forms of compensation that are often offered by at least larger companies are disability insurance, and especially long-term disability insurance as this becomes an increasingly important issue with the aging of the population. While fewer and fewer companies are offering traditional pension plans, most large companies will have to at least consider offering matching investments in a 401K or comparable program. Such comparable programs may come about in terms of stock-sharing or other stock options; however such offerings can be very unreliable (especially in high-tech industries) and so may fail to be an effective recruiting or retention tool (Ulrich, 1996).

TOPIC: Capstone Project on Human Resources Planning Budgeting * Assignment

Such a program may be essential in recruiting and retaining the highest quality of employee, and this too must be considered to be one of the most important indirect factors in reducing costs because having highly talented employees will increase the business' ability to become more efficient. This is not generally considered as one of the ways in which HR Departments can contribute to helping the company as a whole reduce costs that are only indirectly related to its core functions. More and more, HR Departments are becoming responsible for indirect costs and benefits of the overall company (Human resources reports and essays, 2006).

Among the final core responsibilities that a HR Department is responsible for are other costs directly associated with compensating employees. These include the cost of running the HR Department itself and other budgetary items such as overtime costs and the costs of temporary workers. Helping a company limit overtime wages can be a fundamentally important function for an HR Department, and this may include slotting in temporary workers in a judicious way as temporary workers will almost necessarily cost a company less than paying full-time employees overtime (How to find recruiters in your midst, 2012). This is true not only because temporary workers receive less in wages per hour than regular employers, especially when overtime hourly wages are added and because temporary workers do not receive benefits, or if they do they receive them from the temporary agency that they work for.

One of the ways in which a company's HR Department can reduce costs is to do everything possible to reward its best employees so that they stay (and thereby reducing the turnover rate). Such rewards can include everything from the very direct strategy of offering rewards in the form of cash awards or awards in other forms of compensation, such as added vacation days or a more coveted position (Human resources reports and essays, 2006). An HR Department can also development inexpensive but nonetheless expensive reward program such as offering the best parking spot. Such incentives may seem to be small, even trivial to someone on the outside; however, a skillful HR Department will know the company's employees well enough to be able to create a rewards program that is aimed specifically at the workers involved (Conaty & Charan, 2011).

An HR Department must also budget monies for core function costs when friction (or worse) arises between workers and management. These costs may include contract or staff lawyers and the cost for labor relations consultants. These costs will vary dramatically depending not only on the size of the company as well as the economic sector in which the company operates. Labor relations costs can be substantially reduced by an HR Department that works to keep intra-company relationships as smooth and mutually beneficial as possible. The costs of internal friction will always be greater than the costs of wise policies to forestall them. Forewarned is very much forearmed in this arena (Conaty & Charan, 2011).

One of the most effective (both financially and ethically) type of program that the HR Department can implement is a program that focuses on the importance of diversity in a company's employment tool and the necessity of respecting all workers regardless of race, gender, religion, national origin, or any other legally protected category. Not only does a thoughtful policy towards diversity help a company recruit and maintain the most qualified employees but it can also save the company from being sued for sexual harassment, violation of employment laws respecting racial minorities, etc. (Conaty & Charan, 2011).

An HR Department can also be responsible for a range of budgeted activities that affect the safety and overall health of the company's employees. These can include programs that reduce employee's susceptibilities to long-term health problems: Many companies now offer programs such an incentives for stop smoking, lose weight, or start an exercise program. Such programs can also serve as a recruiting and retention program, reduce costs associated with absenteeism associated with chronic health problems such as cardiac disease, increase productivity because healthier workers tend to be more efficient, and reduce the insurance costs for a company, because a healthier workforce is also a cheaper workforce -- a classic win-win situation (Conaty & Charan, 2011).

HR Departments can even design unconventional but effective stress-reduction programs such as nap rooms. Such perqs are generally reserved (of course) to higher-level employees and may, again, seem almost trivial, but they can prove to be very effective. Again, knowing what programs will be most effective or desirable for a particular company is a core responsibility of a HR Department. Taking best-practices and adapting them to the specific needs and potential of a company's workforce is absolutely essential for an HR Department that provides the company as a whole that functions at its best.

Along these same lines, many companies offer EAP or Employee Assistance Programs that provide generally short-term help for acute mental health challenges. Long-term mental health services are likely to be required as a part of healthcare because of mandated comparable care for physical and mental health services; in the absence of healthcare's being provided for employees, however, EAP programs may still be overseen and administered by an HR Department to help employees deal with depression, alcohol or other drug issues, or stress. Such short-term treatments are generally agreed upon to be highly cost-effective in terms both of helping retain and help employees as well as in terms of limiting a company's liability should it be sued, for example, for an alcohol-related car accident that an employee gets into while on company business.

In parallel with such programs aimed at improving the health of individual workers are the company's safety trainings and procedures. Again, a safe work place (which is supported by employees who are well trained on the latest and most effective safety methods) creates fewer costs in terms of remediation, helps attract and retain good employees, and prevents the company from being exposed to the sometimes extremely high cost of paying fines for violating safety standards or for settling legal suits against them for harming employees through carelessness. Related to such programs in terms of offering the potential for a safer, more productive workplace as well as one in which the company's legal liabilities will be substantially reduced is a program that helps prevent work-place violence (Bureau of Labor Statistics, 2011).

Finally, an HR Department must budget for a miscellany of other important expenses including charitable-giving programs ranging in complexity from sponsoring a local children's soccer team to creating an independent charitable division of the company. Such programs may well bring in new customers or increase the loyalty of existing ones, which is not a way in which to reduce costs but rather a way to increase profits.

Module 7. Total Rewards

* Review of Typical U.S. Rewards programs * Make sure to consider all compensable factors such as salaries, benefits, work/life, recognition and career development * Analysis of best practices for compensation, benefits, perks * Consideration of U.S. Taxation requirements (Social Security, Medicare, etc.)

Some HR practices can be understood to be inherently bad. Company policies that allow (or even encourage) illegal actions… [END OF PREVIEW] . . . READ MORE

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APA Style

Human Resources Planning Budgeting.  (2012, December 9).  Retrieved August 1, 2021, from

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