- Estimate your salary employees (easy and it is a good way to check a box) by adding the average raise and prorating as appropriate to when it would be active.
- Calculate each employee’s hours earned at regular time (PTO included). Any excess over 2080 hours, add the ratio of hours to 2080. Jury duty and bereavement are difficult to account as repeatable, but if you see a trend overall, then account for it.
- Add all overtime hours. Use to (ratio of overtime to 2080) * 1.5 (Overtime compensation rate). Add to previously derived number.
- If you need to calculate likely salary cost, then multiply by (1 + the prorated expected raise percentage. Multiply this by the expected FTE calculations. The answer will give you multiplier for the current year’s base salary
- Complete the previous steps for all hourly employees.
- Estimate any promotions that may take into effect the next year
- Carry over on-call pay from previous year
Every system is different. Some have double time considerations, and some calculate FTE requirements with adjustment for overtime rates. Using these principles and considering all of the factors, you should be able to accurately predict your next year’s salary budget. This may also be helpful if you are studying for the Certified Healthcare Technology Management test.