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Higher Education Budgeting - Classified Employee Payroll Example

What is a Classified Payroll Budget?

Classified Payroll Budgets are considered employee budget models and are used by budget managers to plan for all classified salary and benefit related personnel expenses. Key functionality in this type of input form automates budgeting for expenses related to permanent and temporary positions. Features include data capture by salary grade, merit changes, insurance, health and retirement benefits and more. Totals by department roll up to the related general ledger expense accounts. You will find an example of this type of input form below.

Purpose of Classified Payroll Forms

Universities and colleges use Classified Payroll Forms to provide the easiest, most secure employee budget model with automated calculations. When used as part of good business practices in a Budgeting and Planning department, a higher education institution can improve its personnel budget process, as well as, reduce the chances that calculation mistakes cause inaccurate expenses.

Classified Payroll Form Example

Here is an example of a University Budget Form for Classified Payroll.

Higher Education Budgeting - Classified Employee Payroll Example

Higher Education Budgeting – Classified Employee Payroll Example

You can find hundreds of additional examples here.

Who Uses This Type of Input Form?

The typical users of this type of input form are: Budget Officers, Department Managers and HR Managers.

Other Input Forms Often Used in Conjunction with Classified Payroll Forms

Progressive Budgeting and Planning Departments sometimes use several different Classified Payroll Forms, along with payroll assumptions, capex, operating expense- and revenue templates 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 GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others.

In analyses where budgets or forecasts are used, the planning 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) Cloud Solutions and More Examples

Higher Education Budgeting - Unclassified Employee Payroll Example

What is  Unclassified Employee Payroll Budgeting?

Unclassified Payroll Budgets are considered employee budget models and are often used by budget managers to plan for all unclassified salary and benefit related personnel expenses. Key functionality in this type of input form automates budgeting for expenses related to permanent and temporary positions. Features include data capture by salary grade, merit changes, insurance, health and retirement benefits and more. Totals by department roll up to the related general ledger expense accounts. You will find an example of this type of input form below.

Purpose of Unclassified Payroll Templates

Universities and colleges use Unclassified Payroll Templates to provide the easiest, most secure employee budget model with automated calculations. When used as part of good business practices in a Budgeting and Planning department, a higher education institution can improve its employee budget process, as well as, reduce the chances that calculation mistakes causes expense accuracy issues.

Unclassified Payroll Template Example

Here is an example of a University Budget Form for Unclassified Payroll.

Higher Education Budgeting - Unclassified Employee Payroll Example

Higher Education Budgeting – Unclassified Employee Payroll Example

You can find hundreds of additional examples here.

Who Uses This Type of Input Form?

The typical users of this type of input form are: Budget Officers and HR Managers.

Other Input Forms Often Used in Conjunction with Unclassified Payroll Templates

Progressive Budgeting and Planning Departments sometimes use several different Unclassified Payroll Templates, along with payroll assumptions, capex, operating expense and revenue templates 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 GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite, and others.

In analyses where budgets or forecasts are used, the planning 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) Cloud Solutions and More Examples

Personnel Budget Model for Healthcare Providers Example

What is a Personnel Budget Model for Healthcare Providers?

Personnel Budget input forms are considered key components of a healthcare expense budget and are often used by budget managers to create a detailed plan for staff salaries, taxes and benefits. Key functionality in this type of form usually pulls data by facility and with all the departments and their employees in the rows. There are different sections or input templates for salaried versus hourly paid staff. The model also includes hours per shift, bonus, taxes, benefits and more. You will find an example of this type of form below.

Purpose of Personnel Models

Companies and organizations use Personnel Models to enable secure, detailed and accurate budget planning at the employee level. When used as part of good business practices in an HR or FP&A department, a company can improve its employee expense budgeting model, as well as, reduce the chances that there are cost overruns or surprises related to hiring strategies.

Personnel Model Example

Here is an example of a Personnel Budget input form by employee and department.

Personnel Budget Model for Healthcare Providers Example

Personnel Budget Model for Healthcare Providers Example

You can find hundreds of additional examples here.

Who Uses This Type of Form?

The typical users of this type of form are: Budget managers, HR managers, department heads.

Other Forms Often Used in Conjunction with Personnel Models

Progressive HR or FP&A Departments sometimes use several different Personnel Models, along with detailed budget input forms for revenue, capex, other operating expenses 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 GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others.

In analyses where budgets or forecasts are used, the planning 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) Cloud Solutions and More Examples

Expense Budget Assumptions for Healthcare Providers Example

What is an Expense Budget Assumptions for Healthcare Providers?

Expense Assumption input forms are considered budget drivers and are often used by budget managers to automatically calculate expenses, such as for personnel and capital purchases. Key functionality in this type of form provides input for salary and capex drivers. Details for compensation include tax and benefit drivers, increase for shift, overtime and other labor. Details for capex include average lifetime for various asset categories. You will find an example of this type of form below.

Purpose of Expense Assumption Forms

Hospitals and clinics use Expense Assumption Forms to streamline and automate their expense budget. When used as part of good business practices in a Financial Planning & Analysis (FP&A) department, an organization can improve its expense planning process, as well as, reduce the chances that budgets become static and where alterations due to changing circumstances becomes time consuming.

Expense Assumption Form Example

Here is an example of a Expense Budget Assumption form for a healthcare provider.

Expense Budget Assumptions for Healthcare Providers Example

Expense Budget Assumptions for Healthcare Providers Example

You can find hundreds of additional examples here.

Who Uses This Type of Form?

The typical users of this type of form are: Budget Managers, analysts and CFOs.

Other Forms Often Used in Conjunction with Expense Assumption Forms

Progressive Financial Planning & Analysis (FP&A) Departments sometimes use several different Expense Assumption Forms, along with detailed budget input forms for revenue, capex, payroll and operating expenses 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 GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others.

In analyses where budgets or forecasts are used, the planning 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) Cloud Solutions and More Examples

Personnel Budget Assumptions for Government Entities Example

What is a Personnel Budget Assumptions Model?

Payroll Assumption models are considered workforce budget drivers and are often used by HR and budget managers to enter the assumptions needed to calculate benefit and salary budgets. Key functionality in this type of budget template provides input of drivers such as rates per salary grade, percentages (%) of regular and merit increases in salaries. Furthermore, the user can enter both percentages (%) and amount increases for items, such as, healthcare costs, social security and Medicare. You will find an example of this type of budget template below.

Purpose of Personnel Assumption Input Forms

State and local government organizations use Personnel Assumption Input Forms to automate their employee payroll budget calculations and to simplify revisions and changes. It also enables them to quickly create multiple scenarios (versions). When used as part of good business practices in a Budgeting and Planning department, a public sector institution can improve its budget process, as well as, reduce the chances that budget versions are static and time consuming to update.

Personnel Assumption Input Form Example

Here is an example of a Government Personnel Assumption form used to create payroll budgets.

Personnel Budget Assumptions for Government Entities Example

Personnel Budget Assumptions for Government Entities Example

You can find hundreds of additional examples here.

Who Uses This Type of Budget Template?

The typical users of this type of budget template are: Budget Managers and HR Managers.

Other Budget Templates Often Used in Conjunction with Personnel Assumption Input Forms

Progressive Budgeting and Planning Departments sometimes use several different Personnel Assumption Input Forms, along with payroll input forms, revenue and expense budget 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 GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others.

In analyses where budgets or forecasts are used, the planning 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) Cloud Solutions and More Examples

Personnel Headcount Budget Report Example

What is a Personnel Headcount Budget Report?

Personnel Headcount Budget Reports are considered workforce planning tools and are used by budget managers and department heads to plan full time equivalent (FTE) staff levels for the coming year. A key functionality in this type of personnel budget report provides integration with the payroll budget to automatically derive monthly headcount per department. Rows can be expanded to see each employee by department. At the bottom, the report summarizes total Filled and Open positions and grand total headcount. You will find an example of this type of personnel budget report below.

Purpose of Personnel Headcount Budget Reports

Companies and organizations use Personnel Headcount Budget Reports to plan for salary and headcount activities. When used as part of good business practices in a Financial Planning & Analysis (FP&A) and HR Department, a company can improve its workforce-related expenses as well as reduce the risk that staffing levels do not match business plans for the coming year.

Personnel Headcount Budget Report Example

Here is an example of a Personnel Headcount Budget Report.

Personnel Headcount Budget Report Example

Personnel Headcount Budget Report Example

You can find hundreds of additional examples here.

Who Uses This Type of Personnel budget report?

The typical users of this type of personnel budget report are: HR, Budget Managers and Department Heads.

Other Personnel Budget Reports Often Used in Conjunction with Personnel Headcount Budget Reports

Progressive Financial Planning & Analysis (FP&A) and HR Departments sometimes use several different Personnel Headcount Budget Reports, along with payroll reports, dashboards, workforce simulations 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 GP, 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 planning 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) Cloud Solutions and More Examples

Payroll Forecast

Forecasting is always an essential part of any business, and the workforce is typically the largest expense. 

Workforce planning includes salaries, commissions, benefits, taxes, retirement, and much more.  On average, workforce expenses comprises over 30% of gross sales, but it can be over 50% depending on the industry.  Workforce forecasting should always be the top priority for any organization.  Our guide will cover many alignments with strategies, access to data, and best practices on workforce planning and forecasting.

How to Develop a Strategic Plan for Workforce Forecasting

There are many questions to ask prior to starting any type of forecasting, and workforce-related items are often some of the most central questions.  Companies will not be able to forecast reductions, increases, or changes accurately for the workforce without a strategic plan. Data varies, but the estimation is that approximately 90% of all organizations fail to execute their strategies successfully.  

There are many reasons for the failure and it includes lack of communication, not linking strategy to planning, top down approach only, and failed implementation strategy.  Ensure that the organization has a clear strategy and communicate it clearly to the company that there is a well-defined execution path.  

Access to Data for Workforce Planning

The ability to access accurate and timely data for analysis is a necessity.  The data must be accessible in order to build workforce demand forecasting models. There can be a lot of data and below is an example of some of the data by employee by month that would be beneficial in creating a model:

  • Salary
  • Commissions
  • Bonuses
  • Promotions
  • Taxes
  • Benefits
  • New Hires
  • Title
  • Terminations
  • Overtime
  • Headcount by Position
  • Hours Worked
  • Benefit Eligibility

The first question to ask is whether you can access the data.  Determine where the data is coming from and create a process to integrate the data so there is a seamless process monthly or quarterly depending on how often forecasting happens.  

Spot check the data to ensure that the data is accurate as workforce accounts for over 30% of expenses, so a small variance can have a large impact.  For example, if a benefit comprised 1% of gross revenue of $100 Million and the assumption was off by 50%, then the variance would be approximately $500,000 for a single benefit.  This is a substantial variance for just one benefit, which can affect decision-making.   

Generally, workforce demand forecasting models are the most complex templates that organizations have.  The more accurate the data is, then the less complex the models need to be and many of the assumptions go away.  A model allows for enabling quick and accurate decision-making for managers and executives around changes that may need to happen.  They can quickly create multiple what-if scenarios that provide the foundation for the best decision making possible.

How to Forecast Change in the Workforce

There are many ways to go through planning for changes in the workforce.  First, as stated above, set a strategy to provide everyone using the model the clarity to make decisions that meet the strategic plans.  

If management expects production to increase by 50% in manufacturing, then typically there would need to be an increase in workforce or a plan about using more robotics, which may decrease workforce to meet the demand.  However, without this information, the accuracy of the plan will not be accurate.

Decide whether to use a top-down, a bottom-up, or a hybrid of the two approaches.  A top-down approach is when senior management determines the plan and pushes it down to the rest of the company.  A bottom-up approach is when line managers plan and then it rolls up to a consolidated plan.  A hybrid is using both methods and then comparing as different versions. 

Executives can provide a top-down version as a guideline for the managers.  The key to a top-down approach is a model that provides quick what-if scenarios based on adding new hires, modifying benefits, or terminating a percentage of the workforce as an example.

The bottom-up approach typically has two methods and uses the approach that best fits your organization.  One way is to forecast at the employee level.  Managers would go in and enter in new hires, possibly terminations, raises, overtime, and any benefits that a manager would have information on.  This method is very accurate but may have flaws if there is a lot of turnover.  The second method is to plan by headcount by position.  This method would list a job title and how much headcount along with an average salary.  This is not as accurate as it uses an average salary, but works for large organizations that have many people in similar positions. 

Finally, it is important to understand how the organization has been in the past regarding their workforce.  Ask questions such as the following:

  • Is the organization good at hiring or firing?
  • Does it hire too early or too late?
  • Does it usually run a very lean organization or does it get too large?
  • Do certain departments get more budget than other departments?

Understanding this information is vital as it should be included in the plan.

 

The image below offers an example of a partial forecast form where a user can enter a goal, make changes, and see real time changes.

Payroll Forecast

Workforce Forecast – Reporting Process

Reporting is the last step and this comes down to two main parts.  

First, have reports to determine the variances of the workforce forecast against the actual by department.  Next, analyze and document the variances.  Determine if the variances were due to assumptions being incorrect and then modify the model so that it can be more accurate going forward.  If the variances are due to changes in decisions, then document it so that it can be accessible in the future, in case questions come up.

Second, determine the workforce metrics that are important for the organization.  Below are some metrics that may be useful:

  • Revenue/Employee: tracks productivity of the organization over time.
  • Employee Turnover: number of terminations divided by average number of employees.  Note modify to separate out voluntary and involuntary terminations.
  • Benefits Cost/Employee: determine trend by dividing all benefits by employee.  A variation is dividing this by total payroll.
  • Overtime Percentage: overtime divided by total payroll.
  • Time Since Last Promotion: average time in months since last promotion.  This can signify an issue if many top employees are leaving.
  • Time to Hire: the number of days it takes from posting a position to signing the offer letter on average.
  • Engagement: use a survey to ask questions of employees annually and compare over time.

 

This dashboard example is provided by Microsoft shows visual workforce analysis – https://docs.microsoft.com/en-us/power-bi/sample-human-resources

Solver offers an array of workforce demand forecasting models to help set you up for success. You can review some examples in the images below.

Human Resources Dashboard

Contact Solver to Learn More about Workforce Forecasting 

Workforce forecasting is an imperative function for all organizations and it all starts with a good strategic plan. After that is complete and communicated, then provide data access and create models that can enable world-class decisions. Finally, analyze the reports, review the metrics, and make changes based on the analysis.

Our team at Solver can help set you up for workforce planning and forecasting success. Contact our team today or request a demo for more information about our corporate performance management tools.