⭕ What is the Forecast Fee?
The forecast fee on a job profile is the estimated profit generated when the job is successfully placed, based on the total headcount. This amount is displayed in the currency set in your User Settings.
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If you're wondering where the forecast figure in the Job Profile comes from, this article will clarify its calculation methods.
📋 Note: The forecast fee is only displayed when the job is open. If the job is closed, you won't see a forecast fee. Also, this fee is not influenced by the Projected Placement Date.
⭕ Where Does the Forecast Fee Come From?
You can calculate the forecast fee using one of four different methods by selecting from the "Forecast Fee by" dropdown.
1. Manual
If you select "Manual", you can enter the total forecasted fee manually in your chosen currency.
📋 Note: The % chance of placement is not included in this forecast fee calculation within the Job Profile.
2. Headcount
This method pulls the fee value from the Compensation & Fees tab and calculates it using the formula: Active Total Headcount × Profit
📋 Note: The % chance of placement is not included in this forecast fee calculation within the Job Profile.
3. Active Applications - Manual
This method allows you to calculate the forecast per application. You manually input the forecast for each active candidate, considering their % chance of placement.
Applications highlighted in red indicate that a higher headcount is required; these are not included in the total forecast.
You can edit each application’s forecast by clicking the edit icon and adjusting the forecasted amount accordingly.
4. Active Applications - Auto
Selecting "Active Applications - Auto" will automatically overwrite individual forecast fees with the Booked Fee from the Compensation Tab.
The system then distributes the fee among active candidates based on their % chance of placement.
⭕ How to Set a Default Calculation Method of Forecast Fee?
An administrator can set the default calculation method by navigating to:
Settings > Admin Settings > System Preferences > Forecast Fee
⭕ Understanding the % Chance of Placement
If using Active Applications to calculate the forecast, you will see a % chance of placement. This percentage is configured by an administrator under:
Settings > Admin Settings > System Preferences > Placement Probability by Stage
Administrators can decide whether users can edit the % chance of placement manually or only update it when advancing candidates to the next stage.
🤔 What is placement probability?
Placement probability allows you to forecast the probability of making a placement for each candidate based on their job highest stage.
Set the probability of placement by stage – the best way is to ascertain the average amount of actions for each stage to ensure one placement. I.e. If you normally make one placement for for every 5 x 1st interview, your forecast % for the 1st interview stage should be 20%, and so on…
To ensure this works properly, you need to make sure that the Job has two things: 1 Job owner and 2 Forecast fee.
👉 If your probability % is correct, this forecast should provide an accurate assessment of your pipeline value, and what to expect from you and your team. You can filter further on the dashboard itself.
By understanding and configuring the forecast fee calculation correctly, you can ensure more accurate financial projections for your job placements.
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