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How to Forecast Your HR Budget and Staffing in the Coming Year

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No one said forecasting talent and your budget was easy. It’s extremely difficult to try to see into the future and anticipate what your organizational budget and staffing needs will be in the coming year. It is, however, a necessary evil of planning for the future of your human resources department. Not only is it imperative to plan for spending but also it gives you a sense of what your department’s priorities are, what challenges you may face and what your staffing needs will be. In order to do so successfully, there are several strategies you can utilize along the way.

Get organized

The best place to begin is with your previous year’s budget. To get a panoramic view, include the last three to five years’ budgets so you get an idea of averages over time. This will be one of your biggest assets when it comes to forecasting trends and allocating additional dollars. Look at the budgets and P&L for the different locations and divisions you are responsible for. What’s the percentage of overall spend based on your revenue for HR, recruiting and hiring? Categorize wins or losses for the year by using metrics such as hiring conversion, source of hire and turnover to determine where future opportunities may lie.

Many of us tend to rely on opinion or even our memories to evaluate the last year, but the best measure of success is quantifiable numbers that you can use to plan for the year ahead. Since one of the most difficult things about forecasting the next year’s budget and staffing needs is just getting started, gather everything you’ll need in one place and take the first step towards forecasting by looking at the past. It makes the process a bit easier to have what you need at hand.

Evaluate

After you’ve gathered the year’s data, the next step is to look at it critically and see what needs to be changed and what was successful. It can be easy to develop a bias, especially when it comes to your work, but if you can avoid it, you’ll have a better view of what improvements you can make in the next year. You may also want to take a look at what your competitors in the industry have done in the past year or even analyze trends in your region.

I like to keep a detailed journal by month of lessons learned, recommendations and ideas to implement for the coming year. This way I can pull from these seemingly random thoughts to research and build a strategy and budget for the New Year.

This is also a great time to hear from your team to get an idea of where their passions currently lie and which areas they saw strength or weakness in within the last year. While it can sometimes be hard to let go of the reins, there is nothing better than passionate people with ideas. Use this to your advantage.

Think ahead

Talk with your executive team to see where their focus will be in the next year. In order to create a balanced hiring plan and strategy, it’s vital that you know what initiatives the organization will be focusing on. The HR department’s role is critical to the success of your company, so it’s important to have a seat at the table when discussing organizational planning. Ideally, the executives within your organization are well aware of the behind-the-scenes benefits and return on investment you bring.

Thinking ahead starts months in advance by building relationships with key stakeholders in company leadership meetings. I recommend having a monthly HR scorecard with key statistics, metrics and data by month, department or division to help facilitate conversations, relationships and learning about how HR impacts the overall business strategy.

Lean on your business as well as HR peers outside the organization to help identify industry trends and regional quirks, affirm gut feelings or suspicions and brainstorm. Supporting data is the best way to follow your gut so to speak. This is the perfect time to gather a few friends in the industry to talk about what they’re seeing within their organizations. Aside from being able to gain some serious insight and great ideas, meetings and conversations with your peers can be inspiring and affirming. It’s amazing how a bit of perspective from others in the industry or in the area can help you plan for the year ahead.

 



Author Bio:

As a Human Resource Professional with over 20 years of experience, Jenny has extensive experience in management, mentoring, policy development and recruiting. Jenny’s team player mentality and leadership abilities make her an elite HR Director who is always on top of the latest HR trends. She relentlessly directs associates and executives to achieve their maximum potential for both themselves and their companies.

Podcasts

5 Podcasts That Every HR Professional Should Download

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Podcasts provide the opportunity to sit like a fly on the wall and listen to some of the most brilliant minds in the world converse about today’s biggest trends and challenges.

According to a study by Triton Digital, nearly one quarter of Americans listen to a podcast at least once a month. Education is a popular subject, with 40% of podcast listeners tuning in to that type. If you’re an HR professional or business leader looking to broaden your knowledge of HR and HR technology this year, I highly recommend filling your ears and brains with these five podcasts throughout ’18.

1. HBR IdeaCast

From Harvard Business Review, the weekly HBR IdeaCast features leading thinkers in business and management discussing a variety of key topics in the work world.

It is an excellent resource for insights on a wide array of subjects including, but not limited to, HR. The discussions apply directly to organizations nationwide. The podcast reminds me of NPR’s Fresh Air, but with an emphasis on business leaders.

Recommended episodes:

2. HR Happy Hour

Since 2009, HR Happy Hour has featured thought leaders, workplace and technology experts, academics and more to take on important aspects impacting HR, technology and the workplace.

The podcast is so long-running that it has episodes dedicated to just about every HR topic under the sun. The charming hosts Steve Boese and Trish McFarlane make trending topics fun and informative.

Recommended episodes:

3. CIPD

From the UK’s Chartered Institute of Personnel and Development, the monthly CIPD podcast covers everything from talent acquisition to workplace training and cybersecurity.

CIPD’s international perspective brings fresh eyes to subjects that resonate with many American HR professionals. With a backlog of more than seven years’ worth of episodes available, it’s easy to recommend.

Recommended episodes:

4. Workology Podcast

Covering the science and art of the workplace, Jessica Miller-Merrell’s Workology Podcast offers insights and actionable tips on HR and recruiting. Each 45-minute episode promises an in-depth look at every company’s most valuable asset: the employee.

In asking sharp, pointed questions about the latest HR trends, Miller-Merrell does an excellent job as host, bringing a unique and often unexpected take on familiar subject matter.

Recommended episodes:

5. HR Break Room

The official podcast of Paycom, HR Break Room brings you quick conversations on hot topics in HR and HR technology. Co-host Chelsea Justice and I talk with guest experts about the challenges faced by the everyday workplace, as well as their solutions.

To be a bit self-indulgent, I love doing this podcast because it gives me the opportunity to talk with some of the most brilliant minds in the industry. In our first year, our esteemed guests have included New York Times best-selling author Cy Wakeman, millennial expert Adam Smiley Poswolsky, HR Bartender’s Sharlyn Lauby, futurist Jacob Morgan, author and Harvard professor Mihir Desai and of course, motivational speaker and leadership expert, Mark Sanborn.

Recommended episodes:

You can learn more about goings-on within the HR sphere by subscribing to HR Break Room podcast. Here’s to a year full of professional growth through podcasts!

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Posted in Blog, Featured, HR Management, Leadership

caleb.masters

by Caleb Masters


Author Bio:

Caleb is the host of The HR Break Room and a Webinar and Podcast Producer at Paycom. With more than 5 years of experience as a published online writer and content producer, Caleb has produced dozens of podcasts and videos for multiple industries both local and online. Caleb continues to assist organizations creatively communicate their ideas and messages through researched talks, blog posts and new media. Outside of work, Caleb enjoys running, discussing movies and trying new local restaurants.

Deadline Extended

Employer Deadline Extended for Furnishing 2017 ACA Forms

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Distribution of 2017 Affordable Care Act (ACA) Forms 1095-B or -C to your employees has been extended.

As issued in Notice 2018-06, the IRS has extended the deadline from Jan. 31 to March 2. (However, the deadline to provide Forms W-2 and 1099 to employees and contract workers remains as Jan. 31.)

Filing deadlines unchanged

While the deadline to furnish forms was extended, the filing deadlines remain the same: Feb. 28 for paper forms, and April 2 for electronic forms.

IRS Notice 2018-06 emphasizes that employers who do not comply with the due dates for furnishing or filing are subject to penalties under sections 6722 or 6721.

Good-faith transition relief extended

The IRS also announced the extension of good-faith transition relief. This may allow an employer to avoid some penalties if it can show that it made good-faith efforts to comply with the information reporting requirements for 2017.

This relief applies only to incorrect and incomplete information reported on the ACA forms, and not to a failure to file or furnish the forms in a timely manner. Additionally, the IRS stated it does not anticipate extending either the good-faith transition relief or the furnishing deadline in future years.

Contact a trusted tax professional if you have questions on how this may affect your business specifically.

Click here to read more about how the ACA is affect by the new Tax Cuts and Jobs Act.

Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal problems.

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Posted in ACA, Blog, Compliance, Featured

Erin Maxwell

by Erin Maxwell


Author Bio:

As a compliance attorney for Paycom, Erin Maxwell monitors legal and regulatory changes at the state and federal level, focusing on health and employee benefits laws, to ensure the Paycom system is updated accordingly. She previously served as assistant general counsel at Asset Servicing Group in Oklahoma City. She holds a bachelor’s degree from the University of Central Oklahoma and a J.D. from the University of Oklahoma. Outside of work, Maxwell enjoys politics, historical mysteries and spending time with her family.

Creating an Employer Brand

3 Steps for Creating an Employer Brand That Attracts Top Talent

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Talent shortages and an emphasis on recruiting initiatives have made the employer brand one of 2017’s hottest HR topics. The phrase has garnered plenty of buzz online, but for many HR personnel, the definition of “employer brand” remains unclear.

To learn more on the subject, I spoke with guest Rachel Duran, manager of talent acquisition marketing at CA Technologies on an episode of Paycom’s HR Break Room podcast. Below are three main takeaways from that conversation.

Learn more about the employer brand by listening to the full interview with Rachel on the HR Break Room podcast

1. Be descriptive

The employer brand is similar to a product brand in that you can’t just put out a successful product without positioning it at all. You need to let the customers (or in this case, prospective employees) know what they can expect from what you’re selling (your organization). Describe what it means to work at your company and share which jobs are available; the answers to those questions make up your employer brand.

Communicating your employer brand can be as simple as a job description presented through blogs, videos, quizzes and interactive materials that help prospective candidates understand what they can expect from the culture, the benefits and the overall environment of the organization.

2. Be authentic

Authenticity is key to establishing an employer brand that attracts the right talent for you. The brand is shaped by the entire organization from the bottom up and is defined by the culture formed organically by employees and management alike.

Questions top talent asks when considering their next career step include “What does the day-to-day look like?” and “How do your organization’s values impact the atmosphere of the workspace?” Authentic answers are essential.

Don’t be afraid to dig in and do the investigative work to ensure your materials are accurate; they should communicate your employer value proposition. Also, avoid making the mistake of building a brand that is not reflective of your company’s actual mission and culture.

If marketing of an employer brand is not authentic and transparent, it runs the risk of actually increasing employee turnover when expectations are not met. Every interaction, from a recruiter’s first phone call to a company-wide email, is part of employer branding. If a company is not authentic in everything, it is unfair to expect employees to be satisfied.

3. Be realistic

A critical step in shaping your employer brand is to set realistic expectations for prospective talent. Branding should dictate all aspects of the organization’s representation, so ensure the perspectives of key stakeholders are included.

Once you have everybody’s perspective, it’s time to create the promotional materials for your employer brand. From the seemingly minute post with a custom hashtag to a larger project, such as a dedicated career website full of videos, your content should reflect your company’s culture.

In the current war for talent, the employer brand can be a valuable tool in recruiting efforts. Ensure your brand makes the biggest impact possible by being true to who you are. The secret to recruiting and retaining the talent you need is as simple as being honest about your organization’s identity.

Tags:
Posted in Blog, Featured, Talent Acquisition

caleb.masters

by Caleb Masters


Author Bio:

Caleb is the host of The HR Break Room and a Webinar and Podcast Producer at Paycom. With more than 5 years of experience as a published online writer and content producer, Caleb has produced dozens of podcasts and videos for multiple industries both local and online. Caleb continues to assist organizations creatively communicate their ideas and messages through researched talks, blog posts and new media. Outside of work, Caleb enjoys running, discussing movies and trying new local restaurants.

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