What is a Driver-based Payroll Forecast Template?

Payroll forecast input forms are considered a key part of automated forecast models and are used by HR and budget managers to develop hiring and salary expense plans. A key functionality in this type of forecast template allows the user to quickly enter the total target payroll expense and break it down to each position. Next, adjustments can be done at the indvidual/position level. You will find an example of this type of forecast template below.

Purpose of Driver-based Payroll Forecast Models

Companies and organizations use Driver-based Payroll Forecast Models to quickly develop one or many forecast scenarios as part of their human capital planning process. When used as part of good business practices in a Financial Planning & Analysis (FP&A) or HR Department, a company can improve workforce planning strategic and cost-related decisions, as well as reduce risks for over- or under-spending that can potentially impact profitability dramatically.

Driver-based Payroll Forecast Model Example

Here is an example of a driver-based Payroll Forecast form that calculates salaries, taxes and benefits.

Driver-based Payroll Forecast Template

Driver-based Payroll Forecast Template

You can find 100’s of additional examples here.

Who Uses This Type of Forecast Template?

The typical users of this type of forecast template are: Human Resources (HR) and budget managers.

Other Forecast Templates Often Used in Conjunction with Driver-based Payroll Forecast Models

Progressive Financial Planning & Analysis (FP&A) and HR Departments sometimes use several different Driver-based Payroll Forecast Models, along with additional forecast and budgeting models and other management and control tools.

Where Does the Data for Analysis Originate From?

The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Netsuite and others.

In analyses where budgets or forecasts are used, the data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.

What Tools are Typically used for Reporting, Planning and Dashboards?

Examples of business software used with the data and ERPs mentioned above are:

  • Native ERP report writers and query tools
  • Spreadsheets (for example Microsoft Excel)
  • Corporate Performance Management (CPM) tools (for example Solver)
  • Dashboards (for example Microsoft Power BI and Tableau)

Corporate Performance Management (CPM) Technology Solutions and More Examples