Compensation Planning: Compensation planning is a finance function. It resides within Human Resources, but it is almost exclusively a financial budgeting process. The goal of HR is not only to run this process but to build in enough business rules and guidelines to ensure that managers are using good judgment and are spending their budgets appropriately. If not, an organization is budgeting without proper checks and balances, which no finance department would want to see happen. Did you know? While companies spend 50% to 70% on total labor expenses, on average, they spend less than 1% of revenue on human resources operations. |
