Personnel Section
The Personnel Section
This section helps users calculate all costs related to personnel usage, the number of personnel, salary increases, and more.
The parameters to be configured include:
Job title: This is the position or title of the employee. For example, in a coffee shop, possible titles could include Barista, Waiter, Chef, Manager, etc. For a SaaS company, titles might include Developer, Designer, Marketer, Sales, etc.
Salary/month: This is the base salary that the employee receives each month.
Increase rate per year: This is the annual salary increase rate. This rate will be applied to the formula as follows:
Salary of year i+1 = Salary of year i * (1 + Increase rate per year/100).
Example,
If the Salary of year 1 = $1000 and the Increase rate per year = 10%, then the Salary of year 2 = Salary of year 1 * (1 + 10/100) = $1000 * (1 + 10/100) = $1100.
Number of hires: This is the number of employees the business plans to hire during the plan period.
Job begin month: This is the month when the employee starts working. This value is very useful, for example, in determining certain personnel costs that are timely or phased.
Job end month: This is the month when the employee finishes working.
Managing personnel costs effectively is crucial for any business. It involves not only calculating the immediate salary outlays but also planning for future increases and understanding the overall impact of hiring decisions on the business's financial health over time. Additionally, determining the start and end dates of employment can help in accurately forecasting the cash flow needs and ensuring that the business is adequately staffed to meet its operational requirements and strategic objectives.
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