Calculating and reporting Absence costs using Time off period data source
When a time off request is submitted by an employee via self service, or on behalf of the employee by their manager, a record is created in the Natural HR database, specifically in the Time off table. The record includes a Start and End date, Reason and Duration.
In the Report builder, there are two data sources (sometimes referred to as datasets), Time off requests and Time off period, which allow you to create and run reports relating to Time off.
This is an example of a report based on the Time off period data source which includes a field called 'Absence cost'. This field provides an Absence cost per day for each employee listed in the report.
The Natural HR system provides two methods of calculating the Request absence cost:
The default method is to:
- Add the employee's total annual benefits (B) to their annual salary (A) to get (C).
- Then divide (C) by 156 (this is a system calculated factor based on a part time employee Mon, Tue, Wed or 3 days times 52 weeks) to get (D), the Daily salary plus Benefits.
- That daily sum (D) is then multiplied by the Duration (E), the number of working days booked to get (F), the total Request absence cost for this employee.
- The Absence cost (G) is the Request Absence cost (F) divided by the number of Calendar days between and including the Request start date and Request end date, in this example that is 21 days
For a full time employee (Mon - Fri), the same calculation applies but (D) is divided by 156 which is 3 days times 5.
Employee name | Sasha Burton | ||
A | Salary p/a | £27,500.00 | |
B | Benefits p/a | £1,375.00 | |
C | Total Salary + Benefits p/a | £28,875.00 | A+B |
D | Daily Salary + Benefits | £185.10 | C/156 |
E | Duration | 9 | |
F | Request Absence cost | £1,665.8654 | D*E |
G | Absence cost | £79.3269 | F/21 |
Instead of the default Request absence cost calculation you can set up your own costs by going to:
Administration -> Company -> Settings -> Absence cost settings
Please note: You should use the Default calculation method OR add your own cost settings.
Here you can choose the Value meter and add actual values in whichever Daily and or Hourly fields you wish, or you can choose the Percentage meter then add percentage values into whichever fields you wish. In this example 110% (without the % sign) has been added to Employment costs.
The calculation works essentially as before but for our example using Percentage meter and 110% Employment costs:
- Add the employee's total annual benefits (B) to their annual salary (A) to get (C).
- Then divide (C) by 260 (this is a system calculated factor based on a full time employee Mon - Fri or 5 days times 52 weeks) to get (D), the Daily salary plus Benefits. Then multiply D by 110%.
- That daily sum (D) is then multiplied by the Duration (E), the number of working days booked to get (F), the total request absence cost for this employee.
- Finally, to get the Absence cost per day (G), divide (F) by the number of calendar days between and including the Request start date and Request end date, in this example 21 calendar days.
Employee name | Daniel Parker | ||
A | Salary p/a | £52,500.00 | |
B | Benefits p/a | £10,525.00 | |
C | Total Salary + Benefits p/a | £63,025.00 | A+B |
D | Daily Salary + Benefits | £266.64 | C/260*110% |
E | Duration | 15 | |
F | Request Absence cost | £3,999.66 | D*E |
G | Absence cost per day | £190.4602 | F/21 |
In this example, the Value meter is chosen instead and then £100 entered in the Acting up field and £500 in the Employment costs field (without the £ currency symbol).
The calculation works essentially as before but for our example using Value meter, £100 Acting up and £500 Employment costs:
- Add the employee's total annual benefits (B) to their annual salary (A) to get (C).
- Then divide (C) by 260 (this is a system calculated factor based on a full time employee Mon - Fri or 5 days times 52 weeks) to get (D), the daily salary plus benefits.
- Add Daily absence costs (E) to Daily salary + Benefits (D) to get (F)
- Total daily costs (F) is then multiplied by the Duration (G), the number of working days booked to get (H), the total request absence cost for this employee.
- Finally, to get the Absence cost per day (I), divide the Request absence cost (H) by the number of calendar days between and including the Request start date and the Request end date, in this case there are 21 calendar days.
Employee name | Daniel Parker | ||
A | Salary p/a | £52,500.00 | |
B | Benefits p/a | £10,525.00 | |
C | Total Salary + Benefits p/a | £63,025.00 | A+B |
D | Daily Salary + Benefits | £224.40 | C/260 |
E | Daily absence costs added | £600.00 | |
F | Total daily costs | £842.40 | D+E |
G | Duration | 15 | |
H | Request Absence cost | £12,636.0577 | F*G |
I | Absence cost per day | £601.7170 | H/21 |
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