Set a target termination data for an employee

Description

Setting a target termination date for an employee within Corporate Performance Management (CPM) software involves establishing the expected end date of an employee's tenure. This allows planning around individual departures and modeling larger reduction in force planning to better understand long term financial impact.

Example Use Case

Scenario: A multinational corporation is using CPM software to manage workforce planning. They periodically hire contractors for predetermined time periods or have senior staff approaching retirement age. They need better visibility on these future workforce changes to plan and prepare for the subsequent shifts in manpower.

Solution: By setting a target termination date for these employees in the CPM software, HR and other department heads can budget for departure costs such as severance packages and new hire costs such as training and hardware. It also allows for enhanced budget forecasting by predicting potentially higher payroll costs.

Considerations

This feature can be incredibly helpful when modeling out major workforce changes, such as a large expansion (start dates), RIF, or corporate reorganization. It allows the finance team to set term dates, ideally en masse, to show what the financia impact will be on the forecast once those payroll costs end, and the one-time costs for severance packages hits.

Questions to Ask a Vendor

• Setting Termination Dates: Can this be done? If so, can it be done in bulk or applied to a specific dimension, like department?
• HR System Workflow: If an employee is set to term in the HR tool, does that data flow to the workforce planning model in the CPM?