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Custom Elements of Human Resource Budget essay paper sample

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The key purpose of budgeting in an organization like the water company is to ensure that management of the human resources is more effective. Through proper management of the resources, then recruitment of staff members, their compensations and retention is defined. In addition, the geographical recruitment process is put into consideration; hence staff members are paid according to their needs. Budgeting elements aid in achieving the goals that are intended in the organization or company. The interrelation amongst the elements leads to achieving the objectives that the organization has in mind.

Compensation and Benefits

During budgeting, a human resource manager should consider an amount that can be used to reward the staff members in an equitable and competitive manner. This token should be purely based on the merit, responsibility, accountability and competence of a staff member. Benefits and compensation are meant to encourage and motivate the staff members so that they enhance their skills. Thus they become more competent and can advance their carriers (Lalli, 2012).

Recruitment and Placement

Recruitment and placement should be included in the policy of all the organizations. The budget in this sector should be done considering the main objectives and strategies that are in line with the organizational needs. Tools for assessment like the efficiency of a staff, the competence, gender and geographical distribution should be considered. When all this is pit into consideration, then family needs and work is taken care of. The performance of an individual should determine if he or she is to be considered for retention in the organization. The budget should be transparent without any discrimination (Lalli, 2012).

Health Safety and Risk Management

The human resource should include health and risk management strategies while budgeting for an organization. Environmental safety should be incorporated together with protection of the staff members. While budgeting for this, considerations based on psychological fitness and well-being as well as the physical well-being of a staff should be taken into account. In the budget, there should be a form of legal protection like in the case of injuries. Under any circumstance of any risk, then the company should be in a position to handle the risk. Risk management policies should strive to respond to the needs of the staff (Shim et al, 2012).

Training and Development

In any organization, there should be an allowance in the budget that accommodates empowerment of the staff by allowing for career advancement. This enables a member of staff to become more competitive and responsible in his or her profession. The organization therefore should include in its budget materials to support the staff in pursuing their careers. Training may involve coaching of staff members in the area where they may enhance their skills. Therefore, budgeting for what the staff may need during training is essential. Budget allocations may include transport, the materials needed and the pay for the person in charge of training (Shim et al, 2012).

Employee Relations and Employee Engagements

Employee relations entail the employee’s regular ways of attending the work; disciplinary procedures, alcohol and drug conduct at work place. The working conditions should also be put into consideration for the employees. Employee engagement is important as it helps in retaining the skilled employees for the growth of an organization or company. Open communication and activities that are team building should be incorporated into the company. Activities like touring a region of interest annually should be included in the budget for enhancing the relations and engagements of the employees (Edwards et al, 2007).


The elements of human resource should be incorporated into any budget for effective functioning of any company. The water company will be successive in all their extension services if they incorporate these elements into their system of management.

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