Benchmarking HR budgets in 2011
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How does your organisation's HR budget compare? The latest XpertHR Benchmarking data on 2011 HR budgets help you find out where you stand. XpertHR's 2011 benchmarking survey of HR roles and responsibilities provides detailed breakdowns of both HR running costs budgets and HR activities budgets. The survey is based on data from 380 organisations with a combined workforce of more than 577,000 employees. |
Subscribers to XpertHR Benchmarking can drill down into the complete benchmarking data from the 2011 HR roles and responsibilities survey.
Benchmarking HR running costs budgets in 2011
The survey reveals the following with regard to the annual budgets for HR departments' running costs (which include costs relating to HR salaries, HR training, HR recruitment and HR information):
- The median annual HR department running costs budget for 2011 is higher when compared with that for 2010.
- One-third of respondents say that their annual HR department running costs budget has decreased over the past two years. A further quarter say that it has increased.
- Public sector organisations report a higher median annual HR running costs budget than those in the private sector.
- Around one-10th of organisations overspent against their annual HR running costs budget in 2010. One-in-three underspent.
- Three-10ths of employers expect their HR running costs budget to decrease over the next two years, compared with just over one in five who expect it to rise.
XpertHR Benchmarking subscribers can also access data on the annual HR department running costs budget per employee and the annual HR department running costs budget per HR staff member.
Benchmarking HR activities budgets in 2011
The survey reveals the following with regard to annual HR activities budgets (which include HR department running costs as listed above, plus recruitment, training and other HR activities, but exclude the budget for employee salaries other than HR staff):
- The median annual HR activities budget for 2011 is higher than that for 2010.
- Median annual HR activities budgets are set significantly higher for organisations in the public sector than for those in the private sector.
- More than one-third of employers have seen their annual HR activities budget decrease over the past two years. In contrast, HR activities budgets have increased at one-fifth of organisations.
- More than one-third of organisations underspent against their annual HR activities budget in 2010. Just over one-10th overspent.
- Nearly three-10ths of those surveyed expect their HR activities budget to fall over the next two years. Only a quarter anticipate an increase in their HR activities budget.
XpertHR Benchmarking subscribers can also access data on the annual HR activities budget per employee and the annual HR activities budget per HR staff member.
Fewer HR departments have own budget in 2011
The proportion of HR functions that have their own budget in 2011 has shown a sharp fall when compared with the number of HR departments with their own budget recorded in 2010. XpertHR researchers speculate that "this change may be as a result of cost-cutting measures or heavier cost-control measures within organisations, where department budgets are re-assigned to a general, organisational one".
You can also access XpertHR's detailed written analyses of the survey findings: HR roles and responsibilities: the 2011 survey; and HR roles and responsibilities 2011: budgets and influence.
Michael Carty, benchmarking editor
