Hi all,

I would like to know more abount budgeting in HR and Cost cutting in HR.

Also if any one could help on the topic " Mandate % in HR ".

I shall be highly grateful if I get some feedback on the above topics. Anything would be fine - a write up, presentation or even an explanatory criteria.

Looking foreward to help from the group.

Thanx and regards to all,

Nina

Hi All

My approach / suggestion is as below:

1. compute manpower costs as % of revenues. Typically the formula in MNC organizations is manpower costs are 1/3 of revenues [another 1/3 as overheads and the balance 1/3 as profits]. for a typical IT company, the manpower costs are about 35% of revenues
2. May be take three years P & L and Balance Sheet data and compute the averages
3. Also look at Compounded Annual Growth Rate [CAGR] of revenues and that of manpower costs. if the CAGR of manpower costs are higher than the CAGR of revenues, the manpower costs need to be looked into. if the CAGR of manpower costs are lower / much lower than the CAGR of revenues, it is an indication of high utilization of manpower / indication that manpower is being used productively
4. May be the HR professionals can collectively compute such figures in various companies and in different industry segments and develop a bench mark - I am willing to value add, if a team is willing

Regards,

senthil