Goal:
Manage existing Human Capital budgets while accurately forecasting
needs and demonstrating a return on the investment
Did You Know?
A Mercer HR study shows: Over the last 5 years Compensation and Benefits budgets
have risen by 10% while the average workforce population has
risen only by 3%. Only 14 % of businesses are able to predict HR Budget for
next year with an accuracy of 5% difference 86% of "cost-overrun" cases include HCM budgets being missed by more than 25%
The Challenge Cost simulation is based on wrong or limited input Budget estimation process is based on "same +10%" Foreseeable influencers are not taken into account No metrics are in place
Key Drivers Need to improve budgeting process and monitoring Need to broaden input source Need to identify areas and reasons for overspending
Our Solution SAS HCM can create predictive budgeting models and provide
activity based costing Include contingent workforce which can sometimes account
for more than 20% of workforce budget Create detailed cost analyses including geographic reports Deliver consolidated reports from disparate sources With predictive model and budget simulation
-You can reduce budget misses by 20%
-Produce indicators of budget misses at least 6 months in
advance
Over the last 5 years Compensation and Benefits budgets
have risen by 10% while the average workforce population has
risen only by 3%.