Performance-Based Budgeting (PBB) is a financial management approach where resources are allocated based on the efficiency, effectiveness, and measurable outcomes of business activities. Unlike traditional budgeting, PBB links funding decisions to specific performance metrics, such as productivity, revenue generation, or cost efficiency, ensuring that investments drive organizational success.

Industries like manufacturing, retail, logistics, e-commerce, and facility management services (FMS) implement performance-based budgeting to optimize workforce expenditures, enhance operational efficiency, and align financial planning with business goals. For companies managing contract workers, gig employees, apprentices, and blue-collar workforce, PBB helps in prioritizing cost-effective workforce strategies, improving payroll efficiency, and ensuring a return on investment for labor-related expenses. By integrating HR and payroll analytics tools, businesses can track performance-driven budgeting, reduce financial waste, and drive sustainable growth.