Introduction to people costs and measuring the workforce
FREE03 – People Professionals and Finance
This CIPD Level 0 video introduces people costs and measuring the workforce as part of the FREE03 – People Professionals and Finance unit, directly addressing assessment criteria AC 1.3 on how people costs appear in financial reporting. The video explores key workforce metrics including headcount and FTE calculations, alongside detailed coverage of payroll, National Insurance, pensions, overtime, benefits, and bonus schemes, whilst also examining training and development expenditure, recruitment costs, and contingent labour expenses. Additional focus is given to absence costs, provisions such as redundancy, and the importance of accruals and budgets in financial planning. By watching this video, learners will gain a comprehensive understanding of how organisations measure and report people-related financial information, essential knowledge for HR professionals managing budgets and contributing to strategic financial 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: Introduction to people costs and measuring the workforce
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.
More FREE03 Videos
Understanding organisational controls and why they matter
AC 3.2 – Discuss the importance of controls, authorisation and data quality.
Metrics, visuals, and working with finance colleagues
AC 3.3 – Explain how people professionals can communicate financial information effective...
Payroll, credit terms, and cash flow timing
AC 1.2 – Explain the difference between profit and cash and why it matters.
Start Learning for Free
Create a free account to access study guides and HR model videos. Upgrade to full features for just £8.99 per unit when you're ready.