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Insights Harjeet Khanduja

Critical

Things to

Consider While
HR Budget

Planning

HR Budget planning is a critical element of
overall budget planning for any company. HR
expenses range from 20% to 35% of revenue
depending on the organization. More so, for
service organizations, HR expenses account for
more than 50% of the revenue. circumstances have impacted most of

the organizations in such a manner
that it will not be advisable to adopt
the practice of incremental budgeting,
My son wanted to taking a base of last year, and adding
understand fiscal deficit. I incremental costs. I would strongly
explained that every year, the recommend going for zero-based
government prepares a budgeting, evaluating the business
budget defining its expenditure and growth and business model of the
income. At the end of the year, if the company. Here are the 5 critical things
government expenditure exceeds its to consider while HR Budget planning.
income, that is known as fiscal deficit.
The Government covers it by printing Business and
money. 01 HR Model

Harjeet Khanduja My son asked, companies must also be Economy will be in a
Vice President- HR, doing budgeting every year. Do they state of recovery next
Reliance Jio. also print money if their expenditure year. There will be
exceeds their income? I told him more and enough opportunities for
companies don’t have that luxury. They businesses to gain ground and expand.
Harjeet is an International speaker, author, need to be much more diligent in their Hence this HR budget planning
poet, visionary, influencer, and HR Leader. An budgeting process. will demand an active collaboration
alumnus of IIT Roorkee and INSEAD. He is HR Budget planning is a critical with each functional and business
currently working with Reliance Jio. He has 2 element of overall budget planning for leader. This year will need more
published patents. He has been conferred with
HR Leadership Award, Pride of the Nation any company. HR expenses range from than just linear manpower planning.
Award, HR Personality of the Year, Top 100 HR 20% to 35% of revenue depending on Strengthening Digital Infrastructure
Minds, Global Digital Ambassador and Global the organization. More so, for service and change in customer behaviour will
Learning Award. Harjeet has been a LinkedIn organizations, HR expenses account for also present an opportunity to evaluate
power profile, Chicken Soup Writer, TEDx
Speaker, Guest Faculty at IIM Ahmedabad, more than 50% of the revenue. jobs, digitize processes, and optimize
Board Member of Federation of World workforce for existing processes. Don’t
Academics and Co-Chair of Nasscom Diversity This year is even more special forget to include redeployment and
Committee. because of the pandemic. Extraordinary retraining costs in the budget.

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