Labour Cost Budgeting

The production of the annual labour budget is typically a lengthy and costly process particularly when it is based on a weekly varying demand led service proposition. With a potentially vast array of variables to consider and inputs required from all areas of the business in varying formats, the process can often become cumbersome and unwieldy, soon leading to a lack of confidence in the final result.

Using sophisticated labour budgeting software tools, LSI can deliver your final wage budget quickly and accurately while providing full visibility of individual components at detail level. Budgets are produced for every department of each site for all weeks of the year. Budget revenue, hours and cost is output along with other budget KPI's such as labour/revenue ratio or revenue per labour hour.

While a budget created from the bottom up is clearly more reflective of actual process and service proposition, some form of 'top-down' control is often required to meet financial constraints. LSI employs tools to provide a full top-down budget adjustment at any level in the corporate hierarchy while retaining the integrity of the original budget calculation. In addition the ability to demonstrate the effects of minor changes even at the lowest level provides the opportunity to understand the sensitivity of such changes in the fine tuning and negotiation of the budget.