The stumbling blocks of personnel cost planning for controllers: Traditional methods are no longer sufficient.

Is your personnel cost planning becoming increasingly complex and intransparent? As a controller, you in particular face major stumbling blocks if you work with traditional methods. In this blog post, we look at the 5 biggest stumbling blocks and why it’s time for a change.

1. Complexity and lack of transparency of personnel costs

Personnel costs are complex and include numerous factors such as partial retirement, bonus schemes and other special agreements. This complexity often leads to a lack of transparency, which makes it difficult to carry out precise and comprehensible cost analyses. Especially in larger companies with diverse remuneration models and pay scale structures, controllers can quickly lose track.

2. Slow and error-prone methods

Traditional methods of personnel cost planning, which are often based on Excel, are not only time-consuming but also prone to errors. Manual data entry and processing carries a high risk of errors, which can have a negative impact on the accuracy and reliability of planning. In addition, maintaining and updating extensive Excel spreadsheets requires a great deal of manual effort, which ties up valuable resources.

3. Difficulties in complying with regulatory requirements

Compliance with current regulatory and legal requirements is another major hurdle. Changes in legislation and new regulations must be integrated promptly and precisely into personnel cost planning. Traditional methods offer little support here, which increases the risk of non-compliance and can result in potentially high penalties.

4. Insufficient integration into the overall planning

Personnel cost planning is often not sufficiently integrated into the company’s overall planning. This leads to inconsistencies and a lack of coordination between departments. An isolated consideration of personnel costs without taking the company’s overall strategy into account can lead to suboptimal decisions and impair the efficiency of resource allocation.

5. Limited analytical competence of HR departments

Many HR departments are only just beginning to develop their analytical skills. Without advanced analytical tools and methods, it is difficult to make informed decisions and strategic recommendations. This inhibits the ability of HR and controlling to proactively respond to changes in the market and develop innovative solutions

Our conclusion:

The stumbling blocks in personnel cost planning clearly show that a change is necessary. Modern, automated planning tools can help here. They not only offer greater accuracy and efficiency, but also the flexibility to react quickly to regulatory and market changes. Controllers and HR professionals should therefore focus more on digitizing and automating their processes to be successful in the long term.

By introducing modern methods, companies can not only manage their personnel costs better, but also achieve strategic advantages. The future of personnel cost planning lies in intelligent networking and the use of advanced technologies.

Deepen your knowledge of personnel cost planning with our guide: Management cockpit for agile personnel cost planning.

To the whitepaper: https://getqvantum.com/whitepapers/management-cockpit-pkp/