Headcount Forecasts in Excel For a software company, personnel-related expenses are usually the largest operating expense by far on the P&L (Profit and Loss Statement). As a large expense, you’ll want to forecast this as accurately as possible. I’ll walk you through how I create detailed headcount forecasts.
You can download the Excel model I used in this example at the bottom of this post. When forecasting operating expenses, I follow the 80/20 rule on where I spend my forecast energy. If it is a large expense item, I’ll spend 80% of my time on those expenses or expense categories. When setting up my model, I’ll take the time to build forecast automation and detailed calculations into my spreadsheet model. Headcount Forecasting and Planning I forecast headcount by position and name. We are still of the size where this makes sense and it is not tedious to maintain.
However, if you have large labor pools, say Pilots or Mechanics in my former life or several hundred sales representatives, you’ll obviously not want to forecast at the named person level. You would be in tears trying to track this. Rather, you will forecast this labor in aggregate using average wage rates, headcount levels, productivity, and so on. And you’ll want to include an open headcount assumption so that you don’t overstate your forecasted labor expenses.
Headcount Forecast Model Setup I use one tab in my spreadsheet where I forecast all named positions by department. 2020 kitchen design v9 crack. This tab is my labor “HQ” and all wage and medical changes in this tab flow out through the entire forecast model.
I group each department together on rows for ease of use. On the left side of the tab, I have my inputs. On the right side, my outputs (wages & taxes, benefits, FTE’s physicals).
Headcount Model Inputs My columns on the left include Department, Roster (Name), Title, Full/Part-time, Wage Rate, Hours, Tax Rate, Benefits Rate, Start Date, and End Date. Pournami telugu movie mp3 songs free download. I’ll explain these in detail below. Department – the employee’s department Roster – obviously, the name of your staff Title – again, just their title FT or PT – this field is in calculating the correctly monthly wage expense Hours – number of hours worked per month for part-time employees Payroll Taxes – current employer’s wage tax rate Medical Rate – I forecast medical expenses by head.
Often, you see medical expense as a percent of wages which is not really accurate. It usually doesn’t matter if that staff is earning 200K or 20K, your medical premiums are set under a fully-insured plan.
If self-insured, I take total medical expenses and the number of participants to determine an average rate per head. Start Date – start date of the position. End Date – end date of the position Required Fields The only required fields are Wage Rate, PT/FT, Hours, Taxes, Medical Rate, and Start and End Date. I’ve built date logic into my model so that if an employee starts on the 17th of the month, for example, the model calculates the wages for the remaining days in the month. Same goes for the end date. Also, aggregate merit and wage inflation increases can be easily forecasted on its own row. Headcount Model Output With my inputs complete, my headcount model will forecast my monthly wages, physical headcount, FTE’s (full-time equivalent), and medical expenses.
FTE’s are determined by how many days in the month the employee worked. At the very bottom of the model, I have a total row and use the SUMIF Excel function to sum these outputs by department.
Strategic Planning Template
Excel Formulas Used SUMIF, IF, AND, EOMONTH Conclusion Headcount expenses often represent the largest expense on a software company’s P&L. It’s important to spend the time to develop a detailed headcount forecast model so that not only your wage forecast is accurate but also your cash flow forecast.
In any software company, there are always new hires, terminations, and transfers so make your forecast life easier with an automated Excel model. I can literally update wage expenses in ten minutes or less and be accurate to the day (assuming our hiring managers are not too optimistic!).
Please let me know if you have any questions or comments. I would love to hear feedback?
How do you forecast headcount or personnel-related expenses? Comment below. UPDATE (Dec-16) – I added flexibility to the model so that you can forecast the same position multiple times on the same row. Instead of a row for each hire, you can enter the number of positions for that role. Much easier to scale.
This headcount forecast template is incorporated into my. Download below. Please enter your email address (no spam) below to download the model. I’ll keep you updated on future models and posts. 'Most comprehensive and accessible SaaS metrics explanation I've found.' 'Great materials, excellent models' 'Great content, which is highly applicable!' 'Informative - adds value to my life THANK YOU' 'Great resources that save a lot of time and brain damage to replicate.'
'Very informative' 'Excellent look at SaaS planning spreadsheets' 'A usable sales conversion model was a big bonus. It saves a lot of us from reinventing the wheel.' 'Well written, interesting topics. My CFO will love this:)' 'Clearly itemized & explained' 'So specific, clear delivery and incredible time saver' 'Straightforward and informed language on metrics essential to tracking success in a SaaS business.' 'Practical and detailed info on calculating SaaS metrics' 'Good content, real life applicability' When the NPS Survey appears, please take a moment to rate TheSaaSCFO.com and provide a comment.
Our Workforce Planning template will allow you to have all of yoru workforce metrics in one area. You can track your workforce planning inititatives by geographic distribution, business units, and job levels. It is very easy to update, maintain and share. The data center tab houses all of the data that all of the metrics are dependent on and all you have to do is enter the data, the charts are dependent on the data you enter on the data center tab as well as the geographic distribution and job level. With our Excel Templates for HR, the templates do all of the math for you, easy, no formulas or charts to figure out.
Headcount Budget Template
Workforce planning – what's in it for me? Your business plan should give you a clear idea of what you want to achieve. Common reasons for workforce planning include:. struggling with the workload generated by your business. regulatory changes, market changes or new technology that could force you to look at how you're running your business. poor staff performance. achieving business growth.
Look at your current staffing situation Good HR records should help you gather this information – but if you don't have this information at hand – you can conduct staff surveys or have conversations with your staff. Questions you should ask to determine your current staffing situation:.
What are your employees characteristics – for example, age, salary, who they report to. What skills do you have in your business?. What's the rate of workforce growth or decline – over time?. What's your staff turnover rate?. How would you rate your workers' satisfaction in their roles?
Hiring new staff Think about the design of your organisation structure – inefficiencies can be commonly tracked back to poor organisational design. Effective organisational design creates an environment where people can work and communicate efficiently. Before you hire new staff, consider the following: Critical skills.
If you couldn't find someone to fill the job, would it hurt your business significantly?. Does one of your employees already possess the skills – but isn't using them in their role?
Consider your options Consider up-skilling existing workers and taking on new entrants to the workforce and training them. When considering your options for employment, be sure to look at:. – offering incentives for employing people aged 50 or older. – providing targeted support services for people looking for work and for employers looking for workers Consider costs This doesn't just mean wages – you'll also need to think about:. turnover. loss of training.
inexperience. long-term vacancies if there's a high turnover of staff due to badly thought-out jobs. Resources. Will this change in three to five years – and if so – how are you planning for it?. Will the role be full-time, part-time or casual?. Having flexible working arrangements, such as part-time hours, working from home or job-sharing options may open up your job to more applicants.
Have you considered a broader range of potential employees such as older/younger workers, or working parents? Determine your future staffing needs Having identified your business needs and profiled your current workforce, you can now get your workforce to meet your business goals. Create a HR manual Tailor a policy and procedure document that will ensure your staff will fit your workforce plan.
You want your business to be as profitable as possible. When it comes to running your business successfully you need to have a good system in place which allows you to keep track of your company’s headcount and take care of your payroll planning with ease. When you use the correct forms you will find that keeping track of this information will be simple and convenient. Our headcount and payroll planning worksheet is the perfect solution. Presonus orchestral collection keygen torrent. Our headcount and payroll planning worksheet will assist with forecasting and planning for the company’s annual headcount, as well as its total compensation.
Not only does our worksheet account for expenses such as fringe benefits for example, but it will also help to forecast your company’s compensation expense by using the projected number of staff per quarter within each of the departments. The worksheet can be downloaded quickly and provide your company with a valuable tool which will make things easier on your staff. How to Use the Headcount and Payroll Planning Worksheet. The first thing you need to do is download the worksheet template which is available on this page for free. You will find this template very easy to customize for your needs. It’s fully customizable design allows you to enter the pertinent information quickly and in a structured manner. You can download the headcount and payroll planning worksheet template right here for free and begin using it for your company’s headcount and payroll needs.
Tips for Using the Headcount and Payroll Planning Worksheet. Start with downloading the worksheet template for free off of this site. It only takes a moment to download it and you won’t be charged. Once you have downloaded the template you want to you will need to choose an extraction program to extract the template. After it is extracted you will double click on it to open it. The process for downloading and using the template is a step by step one.
Make sure the proper department teams are provided with access to the worksheet and enter all the relevant information correctly. Download: Related Templates:.
This business plan headcount and staff costs calculator will help you to calculate staff related costs for use in the and your business plan. Headcount and staff costs form part of operating expenses, and can be a major expense to consider when preparing a financial projection.
Staff costs relate to the costs of having employees, they include the basic payroll expenses such as wages and salaries, but also benefits, perks and employer taxes. The Excel headcount and staff cost calculator, available for download below, allows for up to four departments, a markup percentage, and annual inflation. Headcount and Staff Costs Calculator Preview The calculator is used by entering details of each employee such as job title, basic annual salary cost, whether part time or full time, and start month. The start month can range from 1 to 60 months and the calculator will calculate the relevant cost for a particular year. Additional on-costs such as benefits, perks, taxes are allowed for by applying a mark up percentage to the basic salary costs. The second page of the calculator provides a summary of total staff costs and headcount by department. Headcount and Staff Costs Calculator Download The staffing projection template is available for download in Excel format by following the link below.
Notes and major health warnings Users use this headcount and staff costs calculator template at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a staffing calculator template that you might use. It is purely illustrative.
This is not intended to reflect general standards or targets for any particular company or sector. If you do spot a mistake in the staff costs calculator, please let us know and we will try to fix it.