Conduct a gap analysis for your staffing budgetĪ gap analysis is conducted by comparing your current budget to your desired budget and then identifying the differences. This is where conducting a headcount analysis comes in handy (more on that later). Once you have your baseline, begin to look at what changes need to be made for the upcoming year. Starting with last year’s budget will give you a clear idea of how much you spent on each employee, as well as any unforeseen costs that may have come up. How to create a staffing budget Utilize last year’s staffing budget as a starting point
What is a staffing budget?Ī staffing budget is money organizations allocate towards their full-time employment, contingency, and temporary labor resources over a 12-month fiscal year.Įach department head is responsible for putting together a budget based on accomplishing the team’s goals, both planned as well as special projects that may arise due to business shifts throughout the year. I’ve personally worked in the staffing industry for the past 10 years and wanted to provide an overview and some helpful tips and solutions to make sure your team is set up for success when starting to plan out 2023 staffing budgets. October is notorious for new year planning, budgeting & forecasting, and with the consistent business ebbs and flows the past few years, having a clear plan around staffing budgets and resource allocations is more important than ever.