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