Salaried Labor

Model Summary

The Salaried Labor model is used to schedule the expected on-boarding of new hires needed to carry out your plans for maintaining and expanding your business. Employees defined in this model will accrue benefits and payroll taxes because it is assumed they will be hired without a specific termination date in mind.

Cost Category

The Cost Category field will determine where this cost will be placed on the income statement, and whether it will be included in specific analytics.

Select a category based on the following criteria:

Cost of Revenue: If this cost is directly used to produce, and provide, your products or services to customers.

Sales & Marketing: If this cost is used to attract, acquire or maintain new, existing or current customers. If Sales & Marketing is selected this cost will be included in the overall Cost of Customer Acquisition.

General: If this is a cost that generally contributes to the overall operations of the business or project, but is not directly tied to customer acquisition or revenue production.

Benefits (% of Salary)

The average additional benefits paid to employees in this group as a % of annual pay.

Schedule New Hires by

Allows you to specify the desired method for forecasting new hires. You may choose from the following options:

Date: on-board employees individually by hire date.

Revenue: automatically schedule new hires to take place as you reach specific revenue milestones.

Active Customers: automatically schedule new hires to take place as you reach specific levels of active customers.

New Customers: automatically schedule new hires to take place as you reach specified levels of new customer acquisitions.

If hired by "Date"

Position (if by "Date")

The name of the position hired.

Yearly Pay (if by "Date")

The total yearly gross pay for this position.

Yearly Increase (if by "Date")

The yearly percentage increase in salary expected for each position. Salary increases take place on the yearly anniversary of the hire date.

Month of Hire (if by "Date")

The month this position is expected to be on-boarded.

+ Add Employee (if by "Date")

This will allow you to add another employee to this group.

If hired by "Revenue," "Active Customers," or "New Customers"

Beginning # of Employees

The number of employees already hired at the beginning of Month 1.

Monthly Capacity per Hire

This field specifies the total monthly capacity for each employee measured in terms of Revenue, Active Customers, or New Customers. New employees will be automatically scheduled for hire as the company is forecasted to cross each capacity milestone.

Examples:

If Revenue: an input of $100,000 would mean we need an employee for each $100,000 the company makes in revenue. If the company is making $300K in revenue, then they would need 3 employees to support that level of business. As the company grows passed $300K to $400K in revenue, they will need to add another employee, which would bring the total to 4 employees.

If Active Customers: an input of 1,000 would mean we need an employee for every 1,000 active customers the company has. If the company has 30,000 active customers, then they would need 30 employees for support. As the company grows passed 30,000 to 31,000 active customers, they will need to add another employee, which would bring the total to 31 employees.

If New Customers: an input of 1,000 would mean we need an employee for every 1,000 new customers the company acquires each month. If the company acquires 5,000 new customers on a monthly basis, then they would need 5 employees for support. As the company grows passed 5,000 to 6,000 new customers per month, they will need to add another employee, which would bring the total to 6 employees.

Yearly Salary per Hire

The total yearly gross pay per employee holding this position.