HR Formulas - Using Category Type for utilization levels.

Sometimes you might budget an employees payroll based on an annual salary and a utilization rate.

If you have employees whose total payroll might vary depending on how much of their time you use, which might be driven by capacity utilization elsewhere in your business, our Category type HR Formulas have an option for you.

Go to Employees > Manage HR Formulas, select Add New, and fill in the form as usual, but this time you will choose a source category that represents your Utilization percentage, and now check the box that says: Multiply the Value of this HR Formula's Source Category by the Payroll Compensation Category for all selected Employees above.

This will remove the grid where you would normally enter a percentage for each employee, and instead will multiply each employee's payroll by the Source Category in this formula.

Now if you look at the target category on the Data Sheet for that employee's payroll you will see their total payroll, and an additional line for the amount by which this formula is reducing that payroll.

In the example below, the employee has a base salary of $60,000, and the Utilization rate ranges from 80% at the start f the year to 100% in September and October, resulting in a budgeted payroll of $52,250.