Overview

Before using the Labor Budget Tool, you should establish budget targets based on historical labor performance.

One common approach is to review several weeks of actual labor data and calculate an average labor percentage or labor hours for each job and day of the week. These averages can then be entered into the Labor Budget Tool and used for forecasting and scheduling.

Gather Historical Labor Data

To establish a labor budget using labor percentages:

1. Navigate to Reporting and expand the Proforma section.
2. Select Proforma – By Percent, choose a date range.
3. Select Generate Report.

Fig. 1 – Proforma By Percent Report

For best results, review at least four consecutive weeks of historical data.

Identify Actual Labor Percentages

Within the report, locate the Actual Labor Percent column for each job.

Record the labor percentage for each job and day that you want to include in your labor budget.

Fig. 2 – Actual Labor Percentages

Calculate Average Labor Percentages

After collecting historical data:

1. Remove the decimal point from each percentage value.
2. Add the values together.
3. Divide by the number of weeks reviewed.
4. Reinsert the decimal point in the final result.

This calculation provides an average labor percentage that can be used as your budget target.

Example

Average:

526 + 631 + 615 + 583 = 2355

2355 ÷ 4 = 589

Result = 5.89%

Fig. 3 – Example Labor Budget Calculation

Enter Labor Budget Values

Once averages have been calculated:

1. Navigate to Forecasting > Labor Budget.
2. Confirm Labor Percent is selected in the Budget Types menu.
3. Enter the calculated values into the appropriate fields select Post Budgets to save.

Fig. 4 – Entering Labor Budget Values

Using Labor Hours Instead

The Labor Budget Tool can also be configured using Labor Hours rather than Labor Percent.

To use labor hours:

1. Change the Budget Types drop-down menu to Labor Hours.
2. Run the same historical analysis process.
3. Use values from the Actual Hours column instead of the Actual Labor Percent column.
4. Calculate averages and enter them into the Labor Budget Tool.

Fig. 5 – Labor Hours Budgeting

Things to Keep in Mind

• Review multiple weeks of historical data before establishing a labor budget.
• Labor budgets can be configured using either Labor Percent or Labor Hours.
• The more historical data reviewed, the more accurate the budget will be.
• Labor budgets can be updated at any time as business needs change.