HR Glossary

HR terms frequently used by HR professionals.

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Zero-Based Budgeting 

What is zero-based budgeting?

Zero-Based Budgeting is a method used to create a budget that starts at zero at the beginning of every new month.

What are the benefits of zero-based budgeting?

Zero-based budgeting has many benefits, including the detection of budgets that are inflated and the ability to motivate employees to find cost-effective solutions and undertake responsible decision-making concerning financial choices.

What is the disadvantage of zero-based budgeting?

Zero-based budgeting is time-intensive and complex as calculating an entire budget from scratch may require the involvement of many employees and an adequate amount of time.

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