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Zero-based budgeting (ZBB)
What is zero-based budgeting?
Zero-based budgeting (ZBB) is a financial planning method where every expense is evaluated from scratch, rather than being based on previous budgets. Each cost must be justified anew to ensure that resources are allocated efficiently.
For example, instead of automatically funding the marketing department at last year’s level, the company analyzes which campaigns will bring the most value and allocates funds accordingly. This approach helps focus spending on the most impactful initiatives rather than carrying over unnecessary costs.
Zero-based budgeting allows businesses to identify inefficiencies, cut unnecessary expenses, and optimize their budget. However, it requires detailed analysis and significant time investment, which can be challenging for large organizations.
This budgeting method is especially useful during financial downturns or cost-cutting periods, as it forces companies to prioritize spending based on actual needs and expected returns.
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Soft skillsMental health at workHR processesHiring processProfessional developmentSoftware as a service (SaaS)HR management softwareBackground checkTalent acquisitionNew employee introductionHourly employeeContinuous performance managementAbsenteeism policyDirect reportsBehavioral interviewBehavioral competenciesPerformance improvement planFloating holidayTermination letterJob evaluationOffboardingDisability leaveSick leaveLeave of absenceTime trackingHoliday payAgile methodologyOrganizational chartEmployee experiencePaid time off (PTO)Onboarding processZero-based budgeting (ZBB)Job dissatisfactionNepotismIndependent contractorMetricsLoyalty of employees (eNPS assessment)Cross-functional teamsMatrix organizationTurnover rateVacancy rateCompetencyHoliday accrualCompensationCore competenciesKey workerKey Performance Indicator (KPI)Employee classificationEmployee directoryCareer siteCareer growthCareer pathCareer plateauWorkforce planningArtificial intelligence in HRHuman resources information system (HRIS)Intellectual propertyEmployee Net Promoter Score (eNPS)Employee life cycleRevenue per employeeHarassmentJob instructionDocument management in HRVoluntary benefitDisciplinary proceduresDisciplinary actionBusiness partnershipHR dashboardHybrid work modelBusiness agilityFlexible working hoursExit interviewEmployee burnoutOne-on-one meetingsRecruitment funnelEmployee engagementInternal recruitmentVirtual HRVertical organizationWellness programsGross incomeGross amountGross wagesEmployer brandEmployee benefitsSick leave payWell-beingHR business partnerEmployee databaseBuddy systemOutstaffingOutsourcingHR auditAssesment centerUpskillingHR analyticsJob analysisTraining needs analysisWorkforce utilization analysisWorkforce availability analysis
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