Actual, forecast, and budget labour costs
In the Flash Report, actual, forecast, and budget labour costs are three key financial terms used to track and manage labour expenses. Here's a breakdown:
Actual Labour Cost: This refers to the real cost of labour, calculated based on the actual worked hours. It's the amount you’ve already spent on labour in a given period.
Forecast Labour Cost: This is an estimate of future labour costs, based on hours scheduled in the published rotas. It helps in predicting what your labour expenses might be in the upcoming period.
Budget Labour Cost: This is the amount you plans to spend on labour over a certain period. It’s imported manually based on your planned labour expenditure.
Comparing actual, forecast, and budget labour costs
To analyse labour cost data effectively, compare actual, forecast, and budget figures to identify variances and understand their causes.
Actual vs. Forecast: This shows how accurately your scheduling matches real staff activity. A large gap may suggest issues like unplanned absences, overtime, or scheduling inefficiencies.
Actual vs. Budget: This highlights whether you're staying within your planned labour spending. If actual costs exceed the budget, it could point to overstaffing, higher wage rates, or unexpected business needs.
Forecast vs. Budget: This comparison shows whether your planned staff schedules (forecast) match your expected labour spending (budget). If your forecast is often higher than your budget, it might mean your budget is too low or your business needs have changed.
By regularly comparing these figures, you can spot trends, improve scheduling accuracy, and make better-informed staffing and financial decisions.
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