Entering direct labor employees Follow

Direct labor employees are those whose salaries are directly related to your revenue. A good example is a restaurant server - his wages are part of the cost of bringing a restaurant's product to its customers.

Note: For more details, see What is the difference between direct labor and regular labor?

Because direct labor is so closely tied to revenue, LivePlan offers a number of different ways to calculate a direct labor salary. Use the links above to jump to a specific option.

 

Adding direct labor employees 

  1. Click on the Forecast tab, then choose Personnel:
    forecast-menubar-new-personnel.png
  2. Click the Add Personnel button:
    add_personnel (1).gif#asset:987
  3. Select whether you're adding an individual employee or a group of employees:
    personnelname.png#asset:1139
    If you chose Group of employees, enter the number of full-time equivalents (FTEs) you'll be hiring:
    number_hired.gif
  4. Enter a name for the hire (or group of hires) or just a short description, if you prefer:
    namehires.png#asset:1696
  5. Click Next.
  6. Choose Direct labor, then click Next:
    directlabor.png#asset:1699
  7. From here, move on to the instructions listed below for the type of salary calculation you need.

 

Using a constant amount salary

  1. Under How do you want to enter their salaries, choose Constant amount:
    direct-labor-constant-amount.png
  2. Indicate how much you will pay them (per month or per year), when they will start, and whether you want to include raises for them in the forecast:
    constantpay.png#asset:1701
  3. Click Next:
    direct-labor-next.png
  4. Indicate whether the employee is on-staff or contract:
    onstaff.png#asset:1705
  5. Click Save & Close

 

Using a varying amount salary

  1. Under How do you want to enter their salaries, choose Varying amounts over time. This will change the display:
    direct-labor-varying-amounts.png
  2. Enter the amount you'll be paying each month and the overall amount for the upcoming fiscal years:
    personnelvarying.png#asset:1141
  3. Click Next:
    direct-labor-next.png
  4. Indicate whether the employee is on-staff or contract:
    onstaff.png#asset:1705
  5. Click Save & Close

 

Calculating salary as a % of overall revenue

  1. Under How do you want to enter their salaries, choose % of overall revenue:
    direct-labor-precent-overall.png
  2. Enter the percent of overall revenue the employee should be paid, when they will start, and whether you want to include raises for them:
    crafer-lake-direct-labor.png 
  3. Click Next:
    direct-labor-next.png
  4. Indicate whether the employee is on-staff or contract:
    onstaff.png#asset:1705
  5. Click Save & Close

 

Calculating salary as a % of a specific revenue stream

  1. Under How do you want to enter their salaries, choose % of a specific revenue stream:
    direct-labor-percent-stream.png
  2. Choose the revenue stream from which to calculate this salary:
    direct-labor-percent-stream-chooser.png
  3. Enter the percentage of the revenue stream, when the employees will start, and whether you want to include raises for them:
    personnelrevenuestream.png#asset:1703
  4. Click Next:
    direct-labor-next.png
  5. Indicate whether these are on-staff or contract roles:
    onstaff.png#asset:1705
  6. Click Save & Close

  

More on personnel:

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