How to Design a Position Approval Process Finance and HR Trust

A position approval process is the route a new or changed position takes before anyone recruits for it. To design one that finance and HR both trust, define what triggers approval, standardise the request, route by cost and risk, set time limits, and record every decision against the budget. The steps below cover each part.

What a position approval process is

The terms get blurred, so separate them. Position approval gives permission to create a funded position. A job requisition approval is the workflow that authorises a new or replacement role before recruiting begins. Offer approval comes later and covers the person.

Finance and HR often distrust each other's numbers because they count different things. Position control separates the budgeted job from the person filling it. Two people sharing one split position count as two in a headcount report and one position in a budget report. FTE adds more detail: in one example, three positions total 2.5 approved FTE, with 1.6 assigned and 0.9 vacant. Headcount alone hides that 0.9.

There is a second cause. In Workday, a requisition runs through the configured workflow, but the system does not check whether the position was approved in the annual plan. Approvals not tied to the plan produce unbudgeted hires. For the wider distinction, see our previous article on workforce planning vs position management.

Steps to build the process

1. Define what triggers approval

List the events: a new position, a replacement, a change to level or funding, an extension, a repurposed position number. For example, UCOP requires approval for a new position, for replacing one whose description has not been updated in three years, or for repurposing a position number.

2. Standardise the request

Require the same fields every time: title and level, permanent or temporary, department, new or replacement, and whether it is in budget. No form, no routing.

3. Set routing and tiers

Route by cost, seniority, contract length and whether the role is planned. Take for example how the requisition workflow at the University of Edinburgh varies by business unit and funding, and lists a separate category for new posts over six months. Planned, in-budget replacements can take a short route. Unplanned roles go to finance and an executive.

4. Agree decision rights

A common sequence runs HR review, department head, finance budget check, executive approval, then HR finalisation. Run HR and finance checks in parallel where you can.

5. Set time limits and send-back rules

Give each step a deadline, an escalation owner and a rule that a send-back must state a reason. Without these, approvals stall and managers find workarounds.

6. Record every decision

Store who approved what, when and against which budget line. That audit trail is what lets finance trust the output.

If approvals and budget still live in different files, see how approvals checked against one governed plan in Kivos give finance and HR the same figures. Book a demo to walk through your own process.

Why a spreadsheet will not hold this

Without strong position control, managers fall back on spreadsheets that diverge from the HRIS. If approvals and budget live in separate places, the fix is a shared plan, not a better form.

Measure whether it works

Track cycle time per tier, approved against actual positions, unbudgeted hires, and whether finance and HR figures match. Review the data monthly.

Where a platform helps

A planning platform such as Kivos links approvals to the plan, so each request is checked against budget and cost. Finance and HR then work from one set of figures. See our governance features.

Frequently asked questions

What is the difference between position approval and requisition approval?

Position approval authorises a funded position to exist. Requisition approval authorises recruiting into it. Keeping them separate stops a hire starting without budget.

Who should approve a new position?

Several people, each for their own decision. The department head confirms need, HR checks role design and grade, and finance confirms budget. Senior or unplanned roles also go to an executive.

What should a position request include?

Title and level, permanent or temporary, department, new or replacement, and whether it is in budget. Add cost and funding source so finance can check it.

How do you stop unbudgeted hires?

Tie every approval to the approved plan and block routing without a funded position. Record decisions so exceptions are visible.