Understanding Salary Forecasting
Use Salary Forecasting, a French-specific business process, as an analysis tool or as a forecasting tool. Either analyze the changes in compensation for a group of workers in past periods or simulate how hypothetical events occurring in the future will affect compensation. Because you can see how various events affect your compensation package, this business process is useful for human resources managers or executives wanting to build compensation budgets.
Salary Forecasting is compliant with the rules of the French Analysis Method for compensation variations, called La Masse Salariale. The analysis method that the business process employs enables you to calculate independently the effects of any compensation decisions for a group of workers for a future time period. The reports provided are also in accordance with La Masse Salariale.
The steps for using the Salary Forecasting business process are:
Set up your data.
Run the calculations.
Run and view the reports.
If you use the Salary Forecasting business process for forecasting purposes, then set up events for modeling the future compensation.
If you use the business process for comparison of two past periods, then do not set up any events. Note that the calculation process ignores events defined in past periods.
Complete these steps to set up salary forecasting:
Define, one at a time, two like periods of time.
These time periods can be past, current, or future. Usually, you compare two equivalent periods of time, referred to as the reference and the analysis periods.
Associate the periods for comparison or forecasting.
Define groups, if they are not already created.
Define worker groups using the Group Build module. Each person defined in a group used in the Salary Forecasting business process must have, in his or her compensation package, rate codes attached to a rate code class. Use the rate codes without rate code class report to verify.
Define the various events that you want to apply to the worker groups whose compensation you want to analyze and forecast.
The events can be of various types, as described in the next section. You might also define additional setup data such as proration rules or specific hours rate.
Ensure all events for one scenario have the same elementary period.
(Optional) Define your proration rules.
(Optional) Define your rates for hours worked.
Group events into a scenario.
At the scenario level, define a set of events to apply to groups of workers for a given time period.