Pay · HR glossary

Headcount Budgeting

Headcount budgeting estimates and authorises the cost of planned staffing. It normally considers salaries plus relevant employer costs, recruitment, benefits and the timing of employee movements.

Example

A business budgets for a new employee starting halfway through the year, including six months of salary and the associated employer contributions and recruitment expense.

What to keep in mind

Headcount and cost do not move in identical ways. A vacant senior role can create more budget headroom than several junior vacancies, and start-date delays change the year's actual spend.

Further reading

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