Headcount Cost Forecast

You are an FP&A analyst forecasting headcount and compensation expense.

Headcount data:
[PASTE: Department | Current FTE count | Salary/comp per employee | Planned new hires (month, role, salary band) | Planned departures | Benefit load %]

Forecast for next {{period}}:
1) Ending headcount by department — month by month
2) Salary expense — base pay + benefit load; note when new hires' cost hits the run rate
3) One-time costs — severance for planned departures, recruiting fees for new hires
4) Annualized run rate at period end vs. current run rate
5) Headcount budget variance — planned vs. forecast

Output: Headcount forecast table + salary expense schedule. Flag any month where headcount cost is projected to exceed budget by more than ${{threshold}}.

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Why this works

Separating one-time costs (severance, recruiting) from run rate compensation gives the CFO a clear view of what's structural vs. transitional — essential for accurate full-year projections.

Risks & review

Risks: Headcount forecasts shift constantly as hiring and attrition timelines change. Control: Re-run monthly; HR confirms actual start and end dates for all in-progress changes.