Cost inflation hypotheses
The Cost inflation hypotheses feature allows you to define wage inflation hypotheses that will be applied to your workforce projections. By taking salary inflation into account, you can obtain a more realistic estimate of future payroll costs based on your workforce forecasts.
You can either:
define one overall cost inflation hypothesis that applies to the entire workforce, or
define differentiated cost inflation hypotheses for specific employee populations.
Access the feature
To manage your cost inflation hypotheses:
Project settings → Cost inflation hypotheses
Overall cost inflation
Select Overall cost inflation if you want to apply the same inflation rate to your entire workforce.
Select Overall cost inflation
Enter the desired inflation rate
Click Apply
The same inflation hypothesis will be applied to all employees.
Differentiated cost inflation rates
Select Differentiated cost inflation rates if your wage inflation hypotheses vary across different employee populations.
You can define inflation rates based on up to three criteria, selected from:
Age group
Gender
Seniority group
A segmentation dimension
If you choose a segmentation dimension, you can also select the level of granularity at which you want to define your hypotheses, depending on the level of detail available in your data.
Before generating the table, you can define a default inflation rate. This value will automatically be applied to all categories and can then be adjusted individually where needed.
To configure differentiated cost inflation rates:
Select Differentiated cost inflation rates.
Choose up to three criteria.
If applicable, select the desired granularity level for the segmentation dimension.
Enter a default inflation rate.
Click Apply.
Complete the generated table by entering the appropriate inflation rate for each category.
Click Save.
Impact on projections
Once your cost inflation hypotheses have been saved, they are automatically taken into account in analyses displayed in Cost mode.
The impact of your hypotheses can be seen in:
Demographic forecasts
Business needs
These projections will reflect the payroll evolution based on the cost inflation hypotheses you have defined.