You can now work out the total compensation of any position on your org chart in Functionly to help with budgeting for workforce and headcount planning.
Total compensation for a Position in Functionly is displayed as an annual sum but the inputs to calculate it can be added based on annual or hourly compensation.
To understand more about how "total compensation" works click the link below that reflects how compensation is measured in your organization:
1. Annually
There are two components that combine to generate the "total compensation" of any position measured annually in your chart:
Annual base comp
Annual base compensation is the total amount that a person should expect to earn were they working full-time on an annual basis e.g. if a person works a 48 week year (with vacation is factored in) then their Annual base compensation might be $120,000.
Effort (FTE)
Given how flexible working has vastly increased over the last few years, it's important to be able to factor in people who may not be full-time in their position. For example, if a person is in their position full-time then their FTE (full-time equivalent) will be 1 or if they're only working four days a week then their FTE will be 0.8.
Total compensation (annual comp)
Annual "total compensation" works by taking someone's "Annual base compensation" and multiplying it by their "Effort (FTE)", so that if a Position has an Annual base compensation of $120,000 and works four days a week (0.8 FTE) then their annual total compensation will be $96,000.
2. Hourly
There are three components that combine to generate the "total compensation" of any position where the compensation measured hourly in your chart:
Hourly base comp
This is the amount paid for any position in your organization as an hourly rate in your organization e.g. someone's compensation might be $62.50.
Work hours/week
This is the total hours a person works in their position a week e.g. if they're full-time they may be 40 hours a week or if they're working four days a week they'll be 32 hours a week.
Work weeks/year
This is the total number of weeks in a year that a person works in a position, so if they have four weeks vacation then they may work 48 weeks a year.
Total compensation (hourly comp)
"total compensation" based on "Hourly base comp" works by taking someone's "Hourly base compensation" and multiplying it by their "Work hours/week" and their "Work weeks/year", so that if a Position has an Hourly base compensation of $62.50 and works four days a week (32 hours/week) and has four weeks vacation (48 weeks/year) which equates to total compensation of $96,000.
Have questions about compensation or total compensation? Contact email us at support@functionly.com or via our Contact us page.