Budget Approval. #NewToHR

Budget Approval

Budget approval is arguable one of the most stressful debates HR enters into.

It means taking on management to approve funds they may or may not see as necessary for the betterment of taking care of the employees that make up the company.

This process is still a challenge as HR goes head to head with other departments that usually bring in money, making them more favorable in many cases. Even though the battle can be long and strenuous, there are steps you can take to turn your argument into a credible defense of a department that serves the people that keep the business on track.

First and foremost, remember that facts and statistics cannot be argued with.

Drop the debates that center around thoughts and plans. Opt, instead, for charts, graphs, percentages and direct correlations. Your company board is heavily reliant on data, and the more you have to prove your case, the easier it will be to convince them your proposed budget is justifiable. It is up to you to provide sufficient evidence that the raises you are desiring to hand out are directly related to such things as retention and success. Likewise, design projections based on current and past data to show what you could achieve with the correct funds.

Outside of the budget meeting, take the time to meet with the Chief Financial Officer or the highest financial officer in the company.

Keep them informed of all of the great things happening company wide and all of the goals being achieved by your department. Because they control the money, they will have a much better grasp of what can be done with the budget in addition to seeing HR as an asset instead of a drain. You can also speak with them about realistic projections and use their knowledge to build a solid, achievable plan that can realistically be handled by the current influx of funds.

An interesting (but more and more common) way some departments build up value is printing invoices for their services for each department.

This creates a paper trail as well as financial trail to exhibit HR’s importance to the smooth function of a business. It is a great method for companies where Human Relations is still seen as more of a burden than a benefit. Once upper management finally realizes how much helping the employees helps them, they are more easily assuaged to provide the needed funding.

HR has undergone an incredible evolution over the past few decades.

Initially designed to organize and develop the talent within a company, it is now an active driver of business strategy as it plays one of the most crucial roles in company development—talent acquisition and retention. While the importance has grown, there still exist lingering biases, but these can all be undercut through simple facts and figures.

Given enough time, the people operations team may very well become the strongest force behind corporate success!

© New To HR


1 Comment

Post a Comment