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Employee Cost & TBH Calculation Methodology
Employee Cost & TBH Calculation Methodology
Jeff Von Ward avatar
Written by Jeff Von Ward
Updated over 2 weeks ago

A TBH (To Be Hired) position is any headcount listed in the system without a corresponding linked employee. Positions can be filtered by hiring status - any status other than "hired" is classified as TBH.

TBH Cost Calculation

The following factors are considered for TBH cost computation:

  • Base salary

  • Currency conversion rate, if salary is not USD

  • Load factor, based on load factors you have assigned in TeamOhana

  • Proration factor, based on expected duration in fiscal year

Fiscal Year Cost Breakdown

The total forecast cost comprises both TBH and existing employee costs.

Current FY Employee Cost + Current FY TBH Cost =

Combined costs of the total forecast

Year-over-Year TBH Cost Variation

The TBH cost typically increases in the next fiscal year due to the following:

  • Full-year cost calculation vs. partial year

  • No proration factor applied for future full-year positions

  • All TBH positions calculated at full annual cost

Dynamic Cost Adjustments

The system automatically adjusts costs when:

  • TBH positions are filled (TBH cost decreases).

  • New employees are hired (Employee cost increases).

  • Employees are terminated (Cost prorated to termination date.

Employee Termination Handling

For departing employees:

  • Costs are prorated to their termination date

  • Example: December 31st termination results in 9-month cost calculation instead of 12 months, if April is the start of your next fiscal year.

TeamOhana ensures accurate forecasting by dynamically adjusting costs based on actual hire, terminations, and position status changes throughout the fiscal year.

Final calculation formula:

TBH Cost = Base Salary × Currency Conversion × Loading Factor × Proration Factor

Employee Cost Calculation Components

1. Base Calculation

- Annual cost formula: Base salary × X (loading factor) ÷ Y (currency conversion)

2. Proration Rules

- Employees starting before April 1st (if that's your fiscal year start): 365 days proration.

- New joiners: Prorated based on start date.

- Terminations: Adjusted for end date (e.g., December 31st termination reduces days by ~90).

Special Cases

  • For employees with mid-year start dates, days are calculated as difference between start date and fiscal year end.

  • Terminating employees have prorated costs based on their end date.

  • Variable bonus is currently set to 0 for TBH positions.

System Notes

  • FY impact is automatically calculated in the system

  • Data can be exported using the three-dot menu option in the upper right.

  • Export provides four tabs:

    • Headcount Edit View (list of proposed changes to headcount).

    • Employee View (list of employees).

    • Changes (list of additions or deletions).

    • Employee Changes (list of proposed changes to employees).

In conclusion, TeamOhana's methodology ensures accurate cost forecasting for both existing employees and planned headcount, accounting for regional factors, timing, and employment status changes.

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