“When should financial analyses precede HR decisions? The answer to that question is always.”
Program Overview Download Brochure
In many organizations, human resource costs (recruitment, selection, compensation, training, and workforce administration) are the largest component of the firm’s operating expenses. In some service organizations these items constitute as much as 70% to 80% of the firm’s total costs. Properly managing those costs is therefore critical to the success of any public, private or non-profit organization. Other things equal, a 10% reduction in a firm’s HR costs can produce a huge increase in an organizations bottom line profit.
This pragmatic and interactive program will develop the finance skills and knowledge of the human resource professional that wants to understand the “big picture” at their organization. Learn how to interpret and speak the language of finance in order to effectively understand, communicate and work with colleagues in finance, accounting and operations.
Upon completion of this training course you will recieve your assessment based certificate of completion which has been fully accredited by an official UK government recognized awarding body.
*Successful completion of the course materials, and exam makes you a Certified Finance for Human Resource Professionals(FHRP)™ . You can use the designation of FNFM™ on your resume and business card.
Who Should Attend This Program
This course is designed specifically for the Human Resource Function and is applicable to Human Resource Professionals in all stages of career development.
- HR Policies and Procedures
- Employee Relations
- Employee Communications
- Personnel Administration
Delegates must meet the following criteria to be eligible for certificate of completion:
- Attendance – delegates must attend all sessions of the course. Delegates who miss more than two hours of the course sessions will not be eligible to sit for the Certified Finance for Human Resource Professionals(FHRP)™ Examination.
- Successful completion of the course work and exam – The iIET is a an officially recognized learning center fully accredited by an official UK government recognized awarding body. Upon completion of this training course you will receive your an assessment based certificate of completion which has been fully accredited.
Topics That Will Be Covered
Introduction to Financial Management
- Goals of financial management
- Cash cycle of the enterprise
- Reporting the results: the four financial statements
- Why Human Resources professionals need knowledge of Finance.
Financial Statement Analysis
- Demystifying Income Statement
- Balance Sheet
- Impact of Sound HR policies on balance sheet
- Cash Flow Statement
- Understanding changes in owner’s equity and financial position
Case Study: The Importance of Accounting Standards: Price Waterhouse Coopers
Analyzing and Interpreting Financial Ratios
- Earnings ratios
- Liquidity ratios
- Turnover ratios
- The key ratios for HR professionals
Case Study: Participants will calculate and interpret key financial ratios and financial statements for a typical company.
- Costing methods
- Cost allocation
- Break-even analysis
Capital Budgeting and Methods to Evaluate Cash Flows
- Time value of money
- Factors affecting discount rates
- Capital budgeting
- Weighted average cost of capital (WACC)
- Payback period
- Net present value (NPV)
- Internal rate of return (IRR)
Case Study: Syngenta: Investment appraisal in action
Risk Management with Human Resource Applications
- Risk management
- Qualitative and Quantitative risk analysis
- Scenario Analysis
- Decision Tree Analysis- Evaluating payoffs and risks of different projects
- Sensitivity Analysis – determine how sensitive a project is to particular risks
Group Activity: Build a decision tree to evaluate projects
Controlling the Human Resource project
- Fixed costs and break-even analysis
- Controlling schedules and budgets
- Organizational requirements for project control
Case Study: BG Group Case Study – Calculating the risks in making investment decisions.
The Capital Asset Pricing Model (CAPM)
- Risk characteristics and components
- Principle of diversification
- Beta: a formal metric of risk
- The Capital Asset Pricing Model (CAPM) relationship between risk and expected return
- The Security Market Line and expected return for individual investments
Case Study: Project Evaluation-Tortuga Fishing Equipment Company
HR Value Additions to Financial Bottom Line
- Value creation
- Maximizing Return on Investment (ROI)
- Getting financial support for HR initiatives
*Earn Professional Development Units towards maintaining your relevant certification/license.
*Earn (Professional Development Credit) upon successful completion of this program toward SHRM.