In Productive, the calculation of hourly costs is adjusted based on the actual number of working days in a given month.
This adjustment is important because the number of working days can vary due to differences in month length, starting days, and holidays.
Find out more about setting up cost rates in this article.
How Does the Calculation Work?
For employees with "fixed" cost types (weekly, bi-weekly, monthly, or annual cost types; salaries), Productive divides their total cost by the exact working capacity for the month.
Here’s how this is done:
Precise Working Capacity
Productive considers the exact number of working hours in each month, avoiding assumptions like "4 weeks per month" (since a month typically has 4.33 weeks).
Holiday Adjustments
Public holidays or other non-working days reduce the total capacity, leading to slight variations in hourly costs month-to-month.
Accurate Annual Calculations
Productive takes the cumulative working days into account, ensuring that hourly rates stay consistent and reflect the actual number of hours available for work.
Viewing Hourly Cost Changes
To see how hourly costs change over time:
Go to the employee's profile in Productive (Resourcing > Employees).
Open the Cost Rates tab.
Review the historical data in the expandable table, which shows how hourly rates have fluctuated based on monthly variations in working capacity.
This table is especially useful for monitoring trends and making informed financial decisions.
