FREE 10+ HR Annual Budget Samples in MS Word | MS Excel | Google Docs | Google Sheets | PDF

Budgeting is part of every planning activity of a business organization. Aside from the overall annual budget plans, each department is also tasked to create its own. Why so? Budgeting plans from each department are then turned over to the overall management to create a company annual budget, this is to analyze how much funds should the company allocate per department for the year. Prior to the budgeting, an organization should have completed some kind of strategic planning to identify annual goals and objectives. That will allow departments to concentrate their allotted budgets in supporting those objectives. This rings true especially for the HR department that oversees and manages human resources or employees in terms of wages, benefits, compensation and not to mention recruitment, training programs, and other activities that incur expenses. All these data and expenses would help shape an HR annual budget. Read more about this in our article below. And if you want to start with your budget plans feel free to download our HR annual budget samples made available on this page.

10+ HR Annual Budget Samples

1. HR Annual Budget Template

2. HR Department Annual Budget

3. HR Administration Annual Budget

4. HR Audit Annual Budget

5. Organization HR Annual Budget

6. HR Annual Operated Revenue Budget

7. HR Annual Budget Summary

8. Sample HR Annual Budget

9. HR Finance Annual Budget

10. HR Annual Leave Budget

11. Company HR Annual Budget

What Is an HR Annual Budget?

An annual or yearly budget is the systematic collection of information and data so that the finances needed to support an organization’s objectives can be projected for the upcoming year. That being said, an HR annual budget mainly focuses its objectives and goals on the management of its human resources. Since employees are an important resource that keeps the business running and it is the main responsibility and function of the HR department to see to it that properly managing employees will benefit the company as a whole. But all these may incur costs and expenses which is why you’ll need to factor all these into your budget as you plan for the new year.

How To Create an HR Annual Budget?

To work on that HR annual budget would mean gathering data or information and comparing all these for analysis. Since the HR budget considers HR activities company-wide, it is an incredibly complex yet essential document to determining a company’s future HR activities. By doing so you are able to evaluate the movement of your HR funds and expenses last year which can help you come up with projected costs and allocate the right amount of funds for the next year. A well-crafted HR annual budget will help to prevent over-hiring and understaffing and ensure you have the resources to keep your team engaged on the job. Take note, no two HR annual budgets are ever the same, this will rely solely on the gathered information and a company’s strategic direction. But to help you with your planning, here are several tips that you should consider.

I. HR Goals and Needs

Planning an annual budget would mean setting HR goals and understanding the different needs of an HR department, so you don’t come up short in the places where you need extra funds. So try to identify the goals your department may need for the next year so you may work on a budget to attain those goals.

II. Analyzing Previous Company Data

As mentioned earlier, it is important to reach out to other department’s in the company so they may be able to align each department’s goals with the HR teams. Also reviewing past budget plans will give you further understanding based on historical performance.

III. HR Activities

Determine which HR activities and responsibilities should be included in the annual budget. Below are the usual components that make up an HR annual budget:

• Wages, compensation, and benefits – payroll is one of the biggest items that you’ll have in your HR budget, here are other considerations as well, such as payroll management costs, potential overtime hours, insurance, and any incentive programs.
• Recruitment – create a projected number of people expected to be recruited for the next year.
• Training programs – employee training for career or skills development is to be expected if you want to continuously motivate and enhance your employees to do better with their work. Aside from that health and safety programs are also implemented to safeguard the well-being of the whole organization
• Employee and Labor Relations – these are employee recognition and awards, employment attorney fees, corporate events and etc.

IV. Flexibility in Your Annual Budget

It is always best to consider allocating funds for unexpected costs or expenses. Set more realistic budget caps and understand where you can build flexibility into your budget.

V. Monitor Your Budget’s Performance

Like all budgeting plans, monitoring your budget’s performance helps the team check if all expenses are right on budget. Once you see a negative on the budget plans, then you need to review and make necessary changes.

FAQs

Human resource management is the full responsibility of any company’s HR department. Which means allocating the right funds to fulfill its goals. See to it that you are able to develop a well-crafted HR annual budget to ensure the stability of the HR team’s management system.