What is meant by Personnel cost planning?

Personnel cost planning refers to the process of strategically planning and controlling the personnel costs of a company. This includes considering costs for employee salaries, social benefits, training, recruitment, and other personnel-related expenses to efficiently utilize financial resources and achieve budget objectives.

Typical functions of software in the "personnel cost planning" domain are:

Budget Creation and Management: The software allows for the creation of budgets for personnel costs based on company objectives, historical data, and forecasts.
Salary and Compensation Planning: It assists in planning salaries, bonuses, commissions, and other compensation components for employees considering collective agreements, individual agreements, and operational guidelines.
Social Benefits and Additional Benefits: The software considers the costs of social benefits such as health insurance, retirement plans, and other additional benefits in personnel cost planning.
Workforce Planning: It enables the analysis of workforce requirements in different departments and areas of the company to plan and optimize personnel resources accordingly.
Scenario Analysis and Modeling: The software supports the creation of various planning scenarios and models to analyze the impact of changes in personnel structure or compensation policies on personnel costs.
Forecasting and Predictions: It provides functions for creating financial forecasts and predictions for personnel costs based on current data and future developments.
Integration with HR and Financial Systems: The software can be integrated with other HR and financial systems to exchange data seamlessly and ensure consistent planning and reporting.
Reporting and Analysis: Generation of reports and analysis on the development of personnel costs, deviations from the budget, cost types, and cost carriers to monitor and optimize the efficiency and cost-effectiveness of personnel costs.