In most organisations, including the Fortune 500, total cost of workforce averages nearly 70% of operating expenses. While an organisation’s cost of workforce vary, these costs remain the single biggest organisational expense.
When dealing with a large multisport event or fixed-term project, this major expenditure becomes much more complex, as the project builds in phases that accelerate exponentially over time. Given this fluid and rapidly changing environment, it is essential that when drafting a workforce budget a bid committee uses all the tools at its disposal. Bringing in the right expertise to work with financial planners can help to plan comprehensively and ensure the financial forecasting captures accurate costings and all likely workforce outlay. A considered approach at these initial stages helps to avoid costly misjudgements brought about by oversights or under scoping.
Prudent workforce budgeting helps to present credible, accurate figures to stakeholders – particularly in view of public office approval processes. It can identify and eliminate inaccuracies where significant people expenditure has not been correctly stated or included. It is also crucial in fostering confidence in leadership due to a robust workforce presentation, with well-researched information and cross referencing that plugs any planning gaps and addresses cost oversights before submission.