Factor in different pay types such as salaried, hourly, on-call, overtime

Description

This Workforce Planning requirement provides flexibility for diverse compensation structures employees may fall under. This allows the system plan employees based on their true pay package, and the modeling of certain compensation structures compared to others in a forecast or budget.

Example Use Case

Scenario: A health care organization uses a CPM system for budgeting and workforce management. Their staff includes salaried doctors, hourly nurses, and on-call support staff, each with different pay scales and overtime policies.

Solution: The CPM system is configured to factor in each pay type during planning. When budgeting for staff costs, the system automatically accounts for these variables, resulting in an accurate budget projection. In the case of workforce scheduling, each pay type's different costs (such as overtime pay for hourly nurses) are factored into decision-making processes.

Considerations

The primary benefit here, as in the example above, is planning for different salary outcomes based on different drivers. For example, is it more cost effective to pay salary and benefits, or should we hire a contractor? What levels and drivers will help make that decision? Without this modeling ability, workforce planning tools can be limited when running a scenario analysis.

Many tools offer the ability to list employees and their comp structure but lack tiers, which are needed to plan for hourly employee wage increases based on hours worked. Some may require daily or weekly granularity to do this as well.

Questions to Ask a Vendor

• Support for Pay Types: What types of compensation does your system support? What is the most complex pay structure that we can fit into your standard Workforce Planning model?
• Compensation Changes: How easily can your system adapt to changes in our compensation strategy?