We get many customers asking us how to model headcount and related employee expenses. For example, one customer has three levels of employees all at different pay grades. This customer wanted to forecast salary expense based the number of employees they anticipate having in each bucket. In this scenario there are a number of moving parts:
- The number of employees coming in and out of each bucket.
- The total number of employees per bucket.
- Total salary per bucket.
- Benefits per bucket
If you have yet to read our About Modeling Sample post, get started by doing so. Next, save and open the attached company file and review the analysis it contains to see one of the ways headcount can be modeled in PlanGuru.
Review the file starting with the Non-financial data tab, this is where the "drivers" are built into the model. Salary amounts and the related benefits accounts on the statement of revenues and expenses are built off the drivers from the Non-Financial data tab.
- PlanGuru Support Team