One of my friend asked me how do you budget or forecast the number of headcount needed for your company.
Well I said, just look at your budgeted total expenses for the month. Let assumed that the total expenses for the month is $100,00.
If you business is service based, majority of the expense would be headcount cost. Let assumed that 50% of your total cost is allocated for headcount. Now let works out the number of headcount required.
|
Position |
Headcount(#) |
Average salary |
Total Salary |
|
General manager |
1 |
$6,000 |
$6,000 |
|
Manager |
3 |
$4,000 |
$8,000 |
|
Secretary |
3 |
$2,500 |
$7,500 |
|
Officer |
8 |
$2,000 |
$16,000 |
|
Clerk |
4 |
$1,300 |
$5,200 |
|
Receptionist |
1 |
$1,300 |
$1,300 |
|
Despatcher |
2 |
$1,000 |
$2,000 |
|
Total |
22 |
|
$50,000 |
The above I used is a top down method in working out your headcount number. It is one of the easier methods to do. To support your headcount budget, you can attached an organization chart which can substantiate your budget number.
