Advocating for an HR budget can prove challenging. HR software can be expensive, but how does it impact the company? Your goal should be to save company money and time with the use of any budget you create. We know that investing in HR is vital, but it’s not always easy to argue that when looking at the numbers and pitching a new budget to your boss. Today we wanted to share some tips on how to get the budget you need to succeed as an HR department.
Get Familiar With Last Year’s Budget & HR Results
If you want to advocate for your HR budget, you should start with last year’s budget and HR results. Even if you weren’t in charge of last year’s budget, taking some time to read through it and understand it is vital. Often it’s hard to look into the unknown with clarity. Instead of looking at what you are proposing now, your boss’ judgment may be clouded by what HR has done in the past. Looking at the past is not necessarily a bad thing if your budget was spent well.
If your budget was haphazardly spent, there were inconsistencies, or it just didn’t lead to great results you should know that. You can’t defend your current budgeting needs if you can’t answer questions about past budgets.
Understand HR Trends In Your Area And Around The Country
While you don’t want to spend too much time keeping up with the Joneses, you need to understand HR trends. What do potential candidates and employees expect from HR right now? Why do they expect this? Utilizing great resources like the Society For Human Resource Management or SHRM will help you understand HR trends. You want to make sure you can justify why you need to invest in certain things. Tying investments to trends in your area and around the country will help you do that.
Know That It’s All In The Bottom Line
Above all else, any investment you make boils down to how it affects the bottom line. Go through your budget and be honest: how does this translate to something that benefits the business?
For example, investing in a digital onboarding system will simplify the process of keeping up with onboarding paperwork. Digital onboarding is helpful to your department. It saves your company time and energy in case your company goes through an ICE audit, which is happening more often. We know that I-9 violations can be costly for any company. You can justify spending money on digital onboarding because it organizes your onboarding process. Digital onboarding makes your files easy to access in case you are audited, which is a real possibility right now.
If Something Will Cause A Deficit, Will It Ever Turn Positive?
Businesses are okay with running at a deficit, for a little while. Companies care about the bottom line, but they know debts are necessary for success. If one of your investments will cause a deficit, be clear about when you expect to receive a return on that investment? Often investments like software take a while before you start seeing a net positive benefit. The first year of investing in something is usually the most expensive.
Eventually, you’ll probably turn a profit or even save money for the company. Don’t be afraid to mention that!
Come Prepared With Data And Facts
Now that you know how important the bottom line is, come prepared with the data and facts to back up everything you say when pitching a new HR budget. If you are looking to get the budget you asked for, nothing can compete with the data you’ve calculated.
To come prepared with data and facts, you need data and facts. So, let’s get some data for a typical investment we see right now: investing in an interview scheduling software.
First and foremost, think about all the lost productivity your company has due to scheduling interviews one-on-one. Your recruiters are wasting valuable time going back and forth with candidates about what interview slot works best for them. Even if you have interview scheduling down to a science, there is still some back and forth and hoping schedules match up.
What if your recruiters could share their availability, send a link to everyone eligible to interview, and have the candidate pick a time that works best for them based on recruiter availability? Posting availability with an interview scheduler would benefit everyone. Your recruiters could finally stop being interview schedulers and refocus all those hours spent scheduling interviews. Interview scheduling drastically frees up recruiter time, allowing them to focus on other aspects of the candidate experience.
Once your boss understands how much time recruiters waste scheduling interviews, investing in an interview scheduling platform would make the most sense to them.
Investing in HR is critical for businesses, but you have to make the investments compelling. What makes investing in interview scheduling or onboarding software worthwhile for your boss? What will this investment do for the bottom line? Think of things from an ROI perspective, booses and CEOs are usually after one thing: making more money for the company. How can you create a compelling argument that this investment will increase revenue or stop something else from decreasing revenue?