In terms of HRM, overhead refers to the non-productive or indirect costing related ot HR department. Overhead costing majorly includes expenses related ot salary, utensils, office supplies and tools that are not linked with the specific project or initiatives directly. Although, Overhead costing supers the HR function, but does not give a direct contribution into the hiring and training process. Overhead costing helps in maintain a smooth infrastructure of HRM and allows effective management of Human Resource. Here’s an example of Overhead:
- Rent payments of HR office
- Utiliy costing
- Cost of HR software
- Salaries of HR department
