Direct employment costs and benefits
FREE03 – People Professionals and Finance
This CIPD Level 0 learning video, part of the FREE03 – People Professionals and Finance unit, explores how direct employment costs and benefits appear in financial reporting. Covering assessment criteria AC 1.3, the video examines essential cost categories including headcount and FTE calculations, payroll and National Insurance contributions, pension schemes, overtime, employee benefits, bonus arrangements, training and development expenditure, recruitment costs, contingent labour expenses, absence management costs, and provisions such as redundancy alongside accruals and budgets. By watching this video, learners will understand how people costs are captured and reported within organisational financial statements, equipping them with the knowledge to analyse the financial impact of HR decisions.
Assessment Criteria 1.3
Discuss how people costs appear in financial reporting.
Indicative Content
To include: headcount and FTE; payroll, NI, pensions; overtime; benefits; bonus schemes; training and development; recruitment costs; contingent labour; absence costs; provisions (e.g., redundancy); accruals and budgets.
What You'll Learn
Video covering: Direct employment costs and benefits
About FREE03 – People Professionals and Finance
To develop learners’ understanding of essential finance concepts in business and how people professionals use financial insight to support workforce decisions, budgets and organisational performance.
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