Take the Strain out of Workforce Budgeting

Take the Strain out of Workforce Budgeting


Given the funding constraints organisations are facing, accurate expenditure projections are more important than ever. Since salaries make up the greatest portion of the expenditure budget, it is logical to apply forecasting techniques that can provide a true picture of where workforce costs are headed. The complexities of workforce budgeting can make the task difficult, stressful and time consuming.

Budgeting for the Complexities

You could annualise everything and pretend there’s no turnover, no retirements anticipated, and no pay increases but this will not be accurate. Complexities that need to be considered are:

  • Start Dates. Expected start dates for open positions may vary. Keeping track of those assumptions is important because a large cost variance may result when an actual start date differs from the budgeted date.
  • Attrition (Planned Retirements). Budget consideration should be given for those positions where employees have indicated specific retirement dates. Lump sums need to be budgeted. Also, a backfill for the now vacant position needs to be considered.
  • Leavers. Caters for planned leavers and ensures that the budget reflects the reduction in expenditure post the leave date.
  • Increments. Increments that are due to be given to individuals need to be calculated and included in the budget.
  • Known Future Costs. Plug in known uncontrolled costs into your budget to give the full picture for the year.
  • Global Pay Increases. Cater for future mass pay increases due to legislation or organisational agreements.
  • Vacancies. Integrate your vacant positions into your budget to include planned hires and their associated costs.
  • Trends/Seasonality. Uncontrolled costs such as overtime can vary over the year. Looking back at the trends in previous years is a great way of forecasting these costs in your budget.

Automate the Complexities

At MakoData we have developed a solution that addresses these complexities and automates the calculations. The MakoData solution is designed to automate your Workforce budget process and present you with your budget at the touch of a button.

By including a wide array of datasets, such as data from your Payroll, HR, Travel and Subsistence and Pension platforms, we automate the complexities above and accelerate your payroll budget process with accurate costings and granular calculations resulting in a lot less work and stress at budget time.

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