The “Human Resources” tab in Business Model Forecast is where you are building your hiring hypotheses. One line is for one kind of job position.
There are only 3 different kind of informations to complete in this tab :
- Description : Put here a short description of the job position. Notice that a line refers to one kind of job position, and you can have more than one employee for each kind of job position.
- Annual salary (fully charged) : Fill-in here the average salary fully charged (with all taxes, bonuses and benefits). You can only provide a fixed salary for a job position for the whole forecast period. It’s a choice we made to keep Business Model Forecast simple. If you want to increase a salary over years, especially for associates that are usually underpaid in the beginning, you should consider to increase the “number of employees”. It’s a trick that you should use with parsimony, as it can make the “number of employees” unclear. Use it preferably for a specific job position, like CEO / CTO, … Most other job positions of employees shouldn’t face such huge salary evolution that would require to use that trick.
- Number of employees : Fill-in here the number of employees you expect to hire for a job position over the years. Note that the number to specify in each cell is the global number of employees for one job position (not just the new hiring).
That’s pretty much it!
This table can also be easily used standalone to be included in a Business Plan to show the hiring strategy of the startup.
Let’s have a look to the picture example above. In this case, we expect to have :
- 1 CEO paid 100k$ fully charged from the 3rd to the 5th years, and paid 30k$ in the 1st year and 60k$ in 2nd year
- From 1 to 7 Engineers from the 1st year to the 5th year, paid 80k$ / year
- From 0 to 10 Business guys from the 1st year to the 5th year, paid 80k$ / year
Of course, you should really be carefull when forecasting your Human Resources, to take into account your financial capability and your business needs. We can recommend you to read these articles to help you understand how to articulate the forecast between resources, strategic planning, revenues and funding plan :