Employee Terminations Financial Impact Analysis

Video Tutorial:

Whoever is doing the financial analysis on firing employees can benefit greatly from this organized calculator built in Excel. It is easy to use and has a high-level analysis report creator as well as a detailed tab that rolls up into a separate summary tab. The idea is to enter the headcounts in each department that are planned to be terminated as well as all their financial details (salaries, insurance, benefits, payroll taxes, and any other separation costs) in order to figure out how much money the company will save for the remainder of the year as well as on an annualized basis.

There are slots for up to 20 departments and two separate reporting features. The first reporting feature lets the user enter totals by filling in averages for each employee per department, the second lets the user enter detailed information for each individual employee (including the department they are in) and then rolls up all of that information into an annual report that matches the same style as the high-level summary.

Having good insight into the numbers can help HR managers / General managers make better decisions. This could end up saving people’s jobs by getting a more accurate financial impact (if the manager finds that they don’t need to cut as many people because they were not accounting for x/y/z). This sheet was designed to calculate all relevant financial costs in order to be as accurate as possible.

There are also assumptions for continuation pay for ‘x’ number of months as well as insurance for ‘x’ number of months after the termination date and this will net against the savings amounts.

Visualizations will also display total annual savings by department.