Financial Acumen

Exercise financial insight to establish budgets for human resource (HR) activities and monitor HR operations and outcomes against financial plans

Type

Domain

Competency Area

Human Resource Planning

Levels

Analyse HR strategies, functional objectives and operational plans

Carry out forecasting and budgeting for workforce for the financial year

Calculate workforce’s cash flow requirements

Determine workforce’s financing needs for the financial year

Compare budget data with estimations to highlight discrepancies

Report budget calculations and discrepancies to higher level to facilitate decisions on budget allocation

Ensure adherence to financial controls in accordance with relevant organisational corporate governance and financial policies, legislation and regulations

Gather information on effectiveness of implementation of HR budgets

Manage budgeting and forecasting for workforce

Recommend parameters and assumptions for budget forecasting in accordance with

organisational needs

and market conditions

Prepare financial forecasts for the human resource (HR) function to facilitate financial planning

Implement budget plans to manage resource allocation to HR activities

Manage actual budget to enable financial operations to be measured against forecasted plans

Monitor budget outcomes to ensure proper utilisation and accounting of resources against their intended purposes

Take remedial action against any variances to minimise impact

Present financial forecasts, budgets and budget outcomes to immediate supervisors for review and approval

Evaluate effectiveness of implementation of HR budgets

Revise future financial plans to optimise

workforce’s performance

Develop long-term financial plans for workforce

Determine short- and long-term financial needs to assess HR’s current financial situations

Formulate financial plans to align to HR and overall organisational strategies

Allocate budget resources in accordance with organisational financial plans

Review financial forecasts to anticipate changes in business and operational circumstances

Review draft budgets in accordance with organisational guidelines

Monitor actual expense figures against budget to identify and address variances

Report findings, recommendations and options to organisation management for review in accordance with organisational policies