When preparing staff budgets both direct and indirect costs associated with

employment need to be considered. By doing this it will ensure that current numbers

and workplace needs are analysed and calculated accurately to determine the costs

of either recruiting or offering redundancies. Other factors to consider might be the

cost of training, bonuses and current and future salaries. Calculating the exact

budget may be difficult as it can be based on an employees position or salary.

Budgets based on job position or salary grades are based on average salaries to

employees in certain roles along with the number of positions to be filled per

department overall. This form of budgeting is simpler in some aspects than budgets

based on individual employees. If an employee leaves the organisation, the budget

does not need adjusting as it is assumed that another person will fill the position in

the near future.