Common Elements Used in Salary Forecasting

Four period types define the periods of comparison:

• Month

• Quarter

• Semester (six months)

• Year

Periods, or periods of comparison, are the periods being compared. Use salary forecasting in two ways: to analyze two past periods or to forecast a future period, using the current period as a base.

For forecasting, this period is likely to contain the current date. For comparing past periods, use any period as a basis for comparison.

For forecasting, this is a future period contiguous with the reference period. For comparing past periods, this period must be contiguous with and prior to the reference period.

How often the module processes its calculations.

These elementary period types coincide with your possible payroll dates:

• Monthly

• Semi-monthly (more accurate but takes more processing time)

Suppose that you select Year as the period type and semi-monthly as the elementary period type. The module makes 24 calculations. If you select Monthly as the elementary period type, the module makes 12 calculations.

Select the elementary period type when you define events.

The monthly or semi-monthly segments of a comparison period. Whether the segments are monthly or semi-monthly is determined by the selected elementary period type.

• Past Elementary Period: any elementary period that is prior to and does not contain the current date (date of processing).

• Current Elementary Period: The elementary period that contains the current date (date of processing).

• Future Elementary Period: any elementary period that has its start date greater than the current date.

The process manages the current elementary period exactly the same way it manages any past elementary period. The process manages future elementary periods by copying the data calculated for the current elementary period.

The date the event is to occur (or trigger) within the analysis period.

The two periods (always one analysis and one reference) that you associate for either comparing or forecasting. They are defined by a Working Period ID.

These rules apply to the two periods associated as working periods:

• The two periods must have the same period type.

• The two periods must be contiguous, for example, 1994 and 1995, this year and next year, this month and next month.

• No time periods can overlap.

When using the Salary Forecasting module to analyze the future, use the present as the reference period. This rule is true for all period types: analyze this year against next year, this month against next month, and so on.

A value that must be the same for all events in a scenario.

Identifies a compensation event in the system. You enter one for each event that you define.

Select one of the following: Headcount Increase, Headcount Decrease, Compensation Increase, Promotion, Seniority Increase, Incentives, and Working Schedule.