Average Pay Rates

Labor costs are estimated from the store default, department, and job. Typically, a default average pay rate set is assigned to each store. For example, the default average pay rate of a store could be $12.

If you have enough data to assign average pay rates at a department or job level, you can:

Override the default value assigned to the store with an average for the department
Override the default rate for any job for which you have more precise data

The pharmacy department could have an average pay rate of $20, and the pharmacist job could have an average pay rate of $45. If you do not assign an average pay rate to the pharmacist, the system uses the pharmacy rate for the pharmacist.

You can change the value of a default store rate by a constant amount. The average pay rate for a location or job can be effective dated.

An average pay rule set consists of three possible rates:

A default
An override for one or more generic departments
An override for one or more generic jobs

Pay rate precedence

Job rates override department and default rates. Department rates override the default.

When the system calculates the cost of labor, it looks at the assigned average pay rate at the job level. If a pay rate is not assigned to a job, the system looks at the department. If the department pay rate is not assigned, the system looks for the default pay rate at the store level and applies that rate to each of the jobs in the department.

In Forecasting an average pay rate is used to convert hours to cost when a labor constraint of type cost is used. The constraint engine performs the conversion in the background; the labor forecast cost is not displayed in the Forecast Planner.

Use average pay rates to estimate the cost of labor

The store default pay rate applies to every job in a store unless specific rates are assigned to departments or jobs.

For Example

Assume a store has a default average pay rate of $18.00. The system multiplies this rate by the number of labor hours to determine the cost of the labor hours. If you want to be more specific, you can, for example, enter the average pay rate for departments on the Department tab. If you want to calculate jobs more precisely, you can enter average job rates on the Job tab.

In the following table, the cost of the labor forecast for the Bedford store is calculated using the average pay rate associated with it. Any department or job not specifically listed gets the default of $18.00 per hour.

Bedford Store	Store Default: $18
		Bakery Department: $20
		Deli: $20
		Meat: 22
	...
		Produce
		Produce Manager: $21
		Produce Clerk: $10

Create and assign an average pay rate for different levels

Note: The system allows effective dating for average pay rates. Effective dating means that you can indicate when the current average pay rate ends and a new one is scheduled to start. You can edit an average pay rate when its Effective End Date is in the future. If an average pay rate has been assigned, that value is displayed in Rate($). Otherwise, the rate is inherited from the category above.

To create and assign an average pay rate set to a store, department, and job:

Go to Application Setup > Common Setup > Average Pay Rates.
Select a Forecast Week.
Select Save.

Note: To delete an average pay rate set, select the pay rate set and click Delete. You cannot delete an average pay rate set if it has been used in a calculation.

For a store—

Select a store in the business structure.
In Rate($), enter the Default Rate for the store.
In Effective Date, enter the date on which the store default rate takes effect. This is a required field.

For a department—

In Optional Rate Overrides, select a Department.
Enter the department Rate($).
Enter the Start Date and End Date(or select Forever). To add a new row for another department, click the Add Row icon.

For a job—

Select the By Jobs tab.
Select a Job.
Enter the job Rate($).
Enter the Start Date and End Date(or select Forever). To add a new row for another job, click the Add Row icon.