Assumption Models

Learn how to use assumption models to increase the accuracy of your plan.

Every plan includes a number of assumptions that are used to project plan values. You can create and attach assumption models for turnover and costs to help you increase the accuracy of your plan.

Types of assumption models

The following is a list of assumption models for turnover and costs that you can use to increase the accuracy of your plan.

Annual rates

This assumption model lets you define the total rate of the average headcount that is expected to exit the organization during the plan year.

Seasonality

This assumption model lets you define the distribution of a rate throughout a given year to account for seasonal fluctuations. For example, your organization may experience a high turnover in certain months based on other workforce events such as annual reviews or bonus distributions. You may want to attach the Seasonality of resignations by period assumption model to account for these fluctuations.

Turn off seasonality assumption models to:

• Simplify cost projections.
• Reduce calculation time.
• Look at unadjusted data for a time window of less than a year.
• Set an upper limit.

Cost change

This assumption model lets you define a percentage increase or decrease to a rate in a given period.

New hire workforce costs

This assumption model lets you define assumed costs for new hires. For example, the New hire annual base pay lets you define the assumed base pay for new hires.