In this guide
A workforce cost review starts with the records your organization has approved. Keep position capacity, employee assignments, position budget rates, and employee pay separate, then compare them for the same dates.
Establish the records and dates
Confirm the departments and positions included in the review. Check the effective dates of approved position changes, assignments, rates, and adjustments. A future approved change belongs in the results from its effective date; a position draft awaiting approval does not.
Labor budget describes the cost of approved position capacity, including vacancies. Calculated compensation uses employee pay and assignments. Neither measure is a record of payroll payments.
Work through a dated example
Suppose a position has a $60,000 annual budget rate throughout 2027, with no adjustments. Its approved capacity is 1.0 FTE until September 30 and 0.8 FTE from October 1.
For this example, the calendar year has 365 days. There are 273 days before October 1 and 92 days from October 1 through December 31. The budget uses the capacity and rate applicable on each day.
| Period | Approved FTE | Budget calculation | Cost |
|---|---|---|---|
| January 1 through September 30 | 1.0 | $60,000 × 1.0 × 273 ÷ 365 | $44,876.71 |
| October 1 through December 31 | 0.8 | $60,000 × 0.8 × 92 ÷ 365 | $12,098.63 |
| Full year | Sum of the dated costs | $56,975.34 |
The annualized budget from October 1 is $48,000. The full-year cost is $56,975.34 because the earlier capacity applies for most of the year. Adding annualized rates across months would answer a different question and overstate the cost.
Check employee cost separately
A vacant position still has approved capacity and a position budget. Employee cost depends on who is assigned, their assignment dates and FTE, their pay type, and applicable adjustments. A position budget change does not change an employee’s salary.
Before sharing a comparison, check the selected date or period, department coverage, missing-input warnings, and which adjustments are included. Use the same scope for both measures and review the records behind an unexpected difference.
For staffing examples, see how to calculate a full-time equivalent. For open capacity, see vacant position management.
Review costs in FTE Tree
Workforce Budgeting adds labor budgets, calculated compensation, and financial reports to Position Control. Authorized users maintain dated financial records and review official results in dashboards and reports. Position drafts and requests remain separate until approval is complete.
Read labor budget, calculated compensation, and financial reports for product instructions.