Scenarios: HR Components

As is the case for most businesses, their greatest asset is the people working for them. Learn how to use each of the four human resource components in building What-If Scenarios.

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Human Resource Components

Inside the Scenarios tab, once you create or modify a project, you will find the hiring components in the lower-left box. There are four different hiring components you may want to include; Sales Hire, Hourly Hire, Executive Hire, and Salaried Hire. Read about these four options to get a full understanding of  how to forecast your client's strategic initiatives as accurately as possible. 

 

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1. Sales Hire

This hiring component allows you to forecast the implications of adding a sales position to the staff. 

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  1. Start by giving the sales hire component a name and decide when they will start and the expected duration of the position.
  2. Enter the one-time expenses for this position
  3. Fill out the base salary for the position and the frequency they will be paid.
  4. Enter any sales commission incentives. 
  5. Estimate any ongoing monthly expenses for this position. 
  6. Estimate the gross monthly sales target for this position and how long until the goal is met. Enter '0' for the sales target if you've accounted for the expected sales in another project. 
  7. You must fill out all 9 pieces of information in order to Add this component to your project. 

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2. Hourly Hire

This hiring component allows you to forecast the implications of adding an hourly position to the staff. 

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  1. Start by giving the hourly hire component a name and deciding when the position will begin and the expected duration.
  2. Enter any one time start-up costs and the hourly wage for this new position. 
  3. Fill in the expected regular and overtime working hours. 
  4. If there is an anticipated revenue increase from this position, select 'Yes' and fill in the expected amount. 
  5. You will then be shown the expected costs associated an increase in revenue based on last year's contribution margin. If no revenue is expected, select 'No'.  
  6. You must fill out all 9 pieces of information in order to Add this component to your project.

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    3. Executive Hire

    This hiring component allows you to forecast the implications of hiring an executive position to the staff. 

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    1. Start by giving the executive hire component a name and when this position will begin and the expected duration.
    2. Enter any one time costs and the monthly wage for this new position. 
    3. Fill in the expected monthly benefits and value of incentives for this new position
    4. If there are incentives, you can decide when they will begin and how frequently.
    5. You can also include a commission rate based on sales after this position has been filled.
    6. Choose whether you anticipate an increase in revenue from this position and define how much. 
    7. You must fill out all 11 pieces of information in order to Add this component to your project. 

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      4. Salaried Hire

      This hiring component allows you to forecast the implications of adding a salaried position to the staff. 

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      1. Start by giving the salaried hire component a name and selecting when it will start and the expected duration of this new position.
      2. Enter any one time costs associated with this position.
      3. Enter the monthly wages, benefits, and incentives for this new position.
      4. If incentives are included, decide the frequency and start date.
      5. Choose whether or not there is an anticipate increase in revenue from this new position, and enter the amount or percentage expected. 
      6. You must fill out all 10 pieces of information in order to Add this component to your project. 

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      Thanks for reading! We hope you were able to take away something useful for when you are working in the Scenarios tab. If you have any questions please contact your account manager, or reach out to us at support@myprofitsee.com.