Key Steps in Preparing a Personnel Budget

Question 1

Workload

Answer 1

Identify what the activity or output your staff will perform (per a specific time unit)

a. ) This can be measured in units (number of client visits, number of students enrolled)
b. ) the measure could reflect the amount of time required to deliver a service

Question 2

Productivity

Answer 2

is measured as the output per unit of labor

Question 3

Average Productivity

Answer 3

The average output per employee per year. May be measured in units or time increments.

Question 4

Benchmark Productivity

Answer 4

May be an industry-wide measurement of productivity or could be based on state mandates or the contingencies of a grant.

Question 5

When is productivity not applicable?

Answer 5

Producitivity is not an applicable measurement if the workload is measured in time.

Question 6

Required Staff Hours

Answer 6

This is the amount of time you will need to budget in the upcoming fiscal year (or period?)
- To estimate required staff hours divide the Workload by Productivity.
BUT if the workload is already in hours than you can ignore this step.

Question 7

Hour Per Staff Per Year

Answer 7

This step is used to figure out the number of work-days or work-weeks a particular employee would work in a given budget year. TO find this, take the maximum work weeks or days (e.g. 52 weeks or 365 days) and subtract all the days or weeks of vacation and sick leave, etc. If the claendar year is expressed in days, then be sure to account for “weekend” days the employee does not have to work.

Question 8

Calculate Salary Budget

Answer 8

a. ) Multiply the required number of staff by their respective annual salaries or hours using the pertinent wage rate.
b. ) If necessary, then calculate the number of overtime (or bonus) hours or days, if any. Next, multiply this by the overtime (or bonus) rate.

Question 9

Calculate Fringe Benefits

Answer 9

a. ) If given overall fringe benefit, multiply it by the salary budget.
b. ) Not: - you will need to make an assumption as to whether it applies to the bonus pay or not (usually not).
c. ) If, on the other hand you are given individual rates, then calculate for each type of fringe.

Question 10

• To estimate required staff hours …

Answer 10

divide the Workload by Productivity.

BUT if the workload is already in hours than you can ignore this step.