In today's dynamic business environment, the role of Human Resources (HR) extends far beyond traditional administrative functions. HR professionals are increasingly expected to act as strategic partners, contributing to the overall success and sustainability of their organizations. One essential skill set for HR professionals to possess is financial acumen. Understanding financial principles is crucial for HR professionals to align their strategies with the broader goals of the company and make data-driven decisions that positively impact the bottom line.

Financial acumen enables HR professionals to comprehend the financial health of their organization, interpret key metrics, and assess the implications of HR initiatives on the company's financial performance. Whether it's designing compensation packages, optimizing workforce planning, or implementing talent development programs, having a solid understanding of finance allows HR professionals to make informed choices that drive organizational growth and efficiency. In essence, financial acumen empowers HR professionals to speak the language of business, strengthening their credibility and influence within the organization.

On the completion of this course, you will be able to:

• Describe the importance of financial acumen for HR professionals
• Identify the components of the Balance Sheet, Income Statement and Cash Flow Statement
• Interpret financial ratios to analyse performance of the organization
• Manage HR budget to achieve organizational goals
• Analyse financial impact of HR initiatives
• Identify strategies to work effectively with Finance colleagues and auditors

Programme Outline

Day 1

• Importance of financial acumen for HR Professionals
• Key Financial Concepts for HR
  • Basics of financial statements: Balance Sheet, Income Statement and Cash Flow Statement
  • 11 fundamental accounting policies
• Interpret Financial Ratios for HR Analysis
  • Profitability ratios
  • Liquidity ratios
  • Solvency ratios
  • Efficiency ratios
  • Market prospect ratios
  • Employee ratios

Day 2

• Budgeting for HR
  • Role of HR: budget preparation, monitoring and controlling expenses
  • Understand HR costs: types, drivers and impact on profitability
  • HR budgeting process: forecasting, cost allocation, cost control strategies, align with organizational goals
  • Budgeting techniques: Activity-based costing to identify and manage HR program costs
• Financial Analysis for HR Decisions
  • Analyse financial impact of HR initiatives: talent acquisition, compensation & benefits, training & development
  • Technique: Cost-Volume-Profit (CVP) analysis
  • Reporting: Justify HR program expenses based on financial impact, storytelling with data
• Working with Finance department and Auditors
  • Strategies to collaborate with Finance colleagues
  • Strategies to manage auditor requests

Training Methodology

Our approach to training is based on adult learning principles to create a conducive and active learning environment where participants can apply newly acquired knowledge and skills throughout the workshop.

We use a variety of interactive and engaging activities, such as case studies and group discussions, to allow participants to apply their new knowledge to realistic scenarios in a safe learning environment.

Closing Date for Registration

1 week before programme or until full enrolment.

Intended For

This course benefits HR professionals looking to enhance their strategic role within their organisations through improved financial acumen. This workshop is also designed for professionals, including managers, specialists, and business partners, who aim to strengthen their financial understanding to align HR initiatives with organisational goals. It is ideal for those seeking foundational knowledge of financial statements and ratios to analyze organisational performance and support data-driven decision-making.

Competency Mapping

Others = 14.00 Hours

Programme Facilitator(s)