Employee needs to get a new salary on specific date in Salary Forecast Model

Frequent Contributor

Employee needs to get a new salary on specific date in Salary Forecast Model

Hi,

 

The employee list consists of all current employees in the company and I have their salary among other informaiton in a DATA module. I have created a Salary Forecast based on FTE, Salary, Start Date and End Date. The client wants to be able to select a certain date for a new salary. Is the most convenient way to get this new salary into the forecast by including a formula like "if new salary date passed then include that one as well"? Or should is it more common to build an import function based on date?

 

Similar additional question - they also want to have a percentage salary increase for entire company regardless of person. For example once a year 3% increase. Would be great on input on how to also do this / same way or different.

 

Best regards,

Johan

3 REPLIES 3
Master Anaplanner/Community Boss

Re: Employee needs to get a new salary on specific date in Salary Forecast Model

@johan.marketoft 

Have you taken the new L1 training? - we cover the exact use case you describe in that training

David

Frequent Contributor

Re: Employee needs to get a new salary on specific date in Salary Forecast Model

Hi @DavidSmith,

 

Thanks for replying, the L1 training has workforce planning yes but they don't have this uplift aspect  to the salary as far as I can see? Anyways, I managed to resolve this with a if then else formula so all good!

 

Best regards,

Johan

Contributor

Re: Employee needs to get a new salary on specific date in Salary Forecast Model

Hi Johan,

 

New employee salary:

I am assuming the "Data Module", is not dimensioned by time.I would suggest creating two modules dimensioned by Employees, Time, and versions (if required).

 

1. Input Module: For example named as "New employee salary": This could be model user input driven and can also be import driven ( you would have to build the import action).

 

2. Calculation module: This would compare base salary with the new salary and use the higher of the two to calculate cost.

 

Indexation:

I would suggest creating two modules dimensioned by Time and versions (assumptions around indexation may differ from version to version).

 

1. Input module: % formatted line item that model users can input the desired indexation in the relevant month.

2. Calculation module: This module could have two line items 

     A. Number formatted line item: 1+ the indexation rate from the input module

     B. Number formatted line item: Indexation factor calc: Using a conditional if statement along with previous, if the factor needs to be         compounded, to arrive at an       indexation factor. (For e.g. if IF A * PREVIOUS(A) = 0 THEN A ELSE A * PREVIOUS(B))

 

Finally multiply Line item B from above with the base salary.

 

This should allow increase in base salary at a point in time as well as indexation to be applied globally to all employees.

 

Note: You might have to add additional logic around not applying indexation to employees that have been given a new base salary over and above the indexation assumption, else they will receive an uplift along with a higher base salary.

 

Thanks

Naveed