Workforce Cost Planning

Workforce Cost Planning plans with the expenditures around the personnel. It includes the determination, analysis and subsequent planning of the personnel costs incurred. Since the workforce makes up a large proportion of a company’s total expenditure, this cost planning is essential. It serves the cost control of the internal expenditures. The workforce costs do not only amount to wage payments, however. Likewise the personnel additional costs, which refer for example to training courses, official vehicles or portions of social security, belong to it. Thus these costs represent directly, as well as indirectly paid sums to the employees. The goal of Workforce Cost Planning is to optimize the company’s personnel costs as much as possible. Due to the enormous influence of these costs on the total expenditure of the enterprise, the degree of optimization is here very crucial for the success of the enterprise. A promising structure of Workforce Cost Planning therefore has a noticeable effect on the company.

In order to obtain an all-encompassing overview of these personnel expenses, many companies are turning to planning tools and software-based processes. This allows them to increase precision and flexibility in their planning without sacrificing the time factor Planning tools are able to create a preliminary calculation based on existing data from the previous year and extrapolate future workforce costs to the planning year. The calculated expenses are then added to the company’s general budget planning.

If you are currently looking for a suitable planning tool for your Workforce Cost Planning, we can help. Alternatively, you can also check your current Workforce Cost Planning for its stability using our checklist. Does it still fit the requirements of the fast-moving corporate world in 2023?