Step 8: Plan for Staffing Changes

Plan for new hires by employee or based on capacity

As your company grows, you can use your Jirav model to plan for the associated increase in headcount.  There are two mechanisms by which this can be done, Named Hires & Driver Based Hires. Both of these mechanisms can and should be used together.

Named Hire

A Named Hire is someone you know you need to hire in a specific month. For example, a Named Hire should be used if have an open requisition for a Sales Associate that you expect to hire in February. 

To add a named hire, go to Plans > Staffing > Select ... to the right of Manage Staff to open the context menu > Add Planned Hire.

Populate the Department, Role, Hire Date & Annual Wages for the new hire. You will then see an immediate increase in the plan for salaries effective the month of the hire date as well as increase in other accounts driven by the staffing model, e.g., payroll tax. 

Helpful Hint: Planning for attrition? Simply update the Term Date for an employee planning to leave the company and both salary & headcount will stop calculating after that date.


Driver Based Hire


A Driver Based Hire is someone you know you need to hire based on performance in another area of the business. For example, a Driver Based Hire should be used if need to have a Customer Success Representative for every 100 customers.

To add a Driver Based Hire, go to Plans > Staffing > Select ... to the right of Driver Based Hires to open the context menu > Add Driver.

Create the Driver with a salary representative of the average for the given department and role. Then, choose the desired Driver & Rate to trigger the new hire. If we continue with our example of needing a Customer Success Representative for every 100 customers, our Driver would be Cumulative Customers and our Rate would be 100. 

Be Advised: Cumulative Customers in this example is a Custom Line and may not exist in your Jirav model. This example should be modified as needed to fit your requirements. 

This will trigger a new Customer Success representative to automatically be added to the plan when an additional 100 customers are acquired. In the example below, we can see this occurs in  August 2021. You will also see an immediate increase in the plan for salaries effective the month of the hire date as well as the increase in other accounts driven by the staffing model, e.g., payroll tax & benefits. 

Helpful Hints:

  • The Driver for the Driver Based Hire is typically a cumulative metric, for example cumulative revenue or cumulative customers. Using a periodic metric as a driver can result in unexpected staffing because the headcount will increase or decrease based on the activity for each individual month. 
  • The Round function is always applied to Driver Based Hires to ensure a full headcount is added to the plan. 

Continue to Step 9: Model your Operating Expenses