Human services and finances work together to provide adequate services to individuals in need. Finances allow services to continue and can be an important benchmark to determine whether or not money is being well spent. Human service professionals should educate themselves on how finances can impact distribution of services, measurements, future financing and even their pay.
Distribution of Service
Health service distribution in states is associated with the financial understanding of administrators. Understanding how finances and budgets affect the distribution of services is important to develop the highest quality services at affordable prices. Financial training in the health services is lacking, which is causing a lack of functionality at human service organizations.
Understanding the costs and returns on finance can improve upon the longevity and impact of human services. In human services, financial benchmarks act as a more concrete method of determining which services work and which ones do not. For example, if an organization wants to determine which services are having the greatest impact, they may use financial data to determine the cost and impact of money spent.
Human services is often based on donations, government budgets and trusts. Human service officials should understand that money spent this year may affect budgets next year. Budget cuts, tax cuts, public support for human services and rising costs can have an impact on future financing. Investors and stakeholders often look over current financial records to set new budgets for next year.
Pay and Financing
The budget, and how much resources are available, often has a significant impact on pay within organizations. Executives, public officials and administrators are in charge of the budgets, and they must determine the pay of employees as well as services. Therefore, human service managers and employees should recognize how they obtain compensation and how to minimize costs to create additional benefit cushions.