Introduction
Using current information about existing placements and vacancies, forecast a snapshot of future GP, drive actions to identify which roles may need attention or follow-up to secure future profit. This report also takes into account the likelihood of extensions for contract and temporary placements.
Report highlights
Viewing both vacancies and placements in the same report creates a combined visual of both current and projected GP, along with the ability to filter the type (Contract, Perm, or Temp), identifying where future revenue is likely to come from based on the current pipeline of vacancies and placements.
The default view is: last month, this month, and the next five months.
Who it's for
Aimed at those in a manager/senior manager role to forecast gross profit and highlight areas requiring action to secure future revenue.
Summary of Forecast Report
1 Forecast GP total (loss and profit) for ‘above’ and ‘below’ the line across the selected time period (default is last month, this month, and the next five months).
2 Stacked bar chart shows GP for Placements, forecast GP for likely extensions, and forecast GP for vacancies depending on current shortlist stage.
3 The Forecast Logic section shows what weighting is applied to vacancies based on their shortlist progression, and extensions based on their likelihood to extend status.
4 Pie chart shows percentages for either above or below the dotted line (toggle between each), matching the data in the stacked bar charts.
5 The bottom line shows commentary on contract/temp placements and vacancies within statuses that need attention and/or could contribute to the loss of GP, within the next 30 days.
Forecast Logic
Adjust the weightings for the forecast by selecting the scales icon.
2 Below line: Lower level of confidence that this GP value is unlikely to be secured based on the current status without further action (e.g. a change in the likelihood of extension for an existing contract/temp placement).
Gross Profit Calculations
Vacancies
Permanent: GP is forecasted using the intended start date of the vacancy. This does not include multi-position vacancies.
Contract/Temporary: GP is forecasted from the intended start date and for the number of weeks the vacancy is set to last. This does not include multi-position vacancies.
Calculation: Vacancy GP (from Vacancy record) x Forecast Logic (of selected weighting of furthest status reached) = Predicted GP
Example: £46,000 (Permanent) x 0.6 (Status: Interview Further) = £27,600
NOTE: Do not view this calculation as an absolute value. Instead, think of the weighting as a sliding scale of probability. In this case, when a Vacancy reaches the ‘Interview Further’ status, there is a 60% chance that the role makes it through the recruitment pipeline to an accepted offer and Placement creation.
Placements
Permanent: GP is taken from confirmed permanent placements plotted against the start date.
Contract/Temporary: GP is based on confirmed placement start dates and then forecast based on the next expected extension. Two assumptions are made:
- The next extension starts immediately after the current one ends.
- The duration matches the latest placement/extension length (to the original end date).
Calculation: Placement GP (from Placement record) x Forecast Logic (of selected weighting of furthest status reached) = Predicted GP
Example: £3,250 (Contract) x 0.5 (Status: Unsure) = £1,625
Drill-throughs / additional charts
Existing Placements
What: Bar chart sections “Existing Cont/Temp Placement” or “Existing Perm Placement”
How: Right-click either of these sections and select drill-through option (Existing Perm Placements Details or Existing Contract/Temp Placements Details)
Table - Example: Existing Contract/Temp Placements
1 Click the eye icon to open the Placement record within Mercury.
2 Sort placements by headers. Default is by Gross Profit value (highest to lowest)
Vacancies
What: Bar chart sections “+ Perm Vacancy” / “+ Cont/Temp Vacancy” above the line, or “- Cont/Temp Vacancy” / “- Perm Vacancy” below the line
How: Right-click any of these sections and select drill-through (Perm Vacancies Value drill through or Contract/Temp Vacancies drill through)
Bar Chart - Example: Contract/Temp Vacancies Forecast
Shows all current permanent vacancies and their furthest stages (not all stages will show unless there are vacancies at that stage). Defaults to the view set on the main report page.
Right click a section of the bar chart (by status) to drill down further to a table:
Table - Example: Contract/Temp Vacancies at ‘Interview First’ status
2 Sort vacancies by headers. Default is by Forecast Gross Profit value (highest to lowest)
Forecast Extensions
What: Bar chart sections “+ Forecast Extension” above the line, or “- Forecast Extension” below the line
How: Right-click any of these sections and select drill-through (Forecast Extensions Value drill through)
Bar Chart - Example: Forecast Extension
Shows all roles that have possibility for extension and their furthest stages. Defaults to the view set on the main report page.
Right click a section of the bar chart (by status) to drill down further to a table.
Table - Example: Contract/Temp Placements at ‘Not Discussed’ extension status
2 Sort vacancies by headers. Default is by Forecast Gross Profit value (highest to lowest)
Glossary of terms for
‘Above the line’ - Forecast GP based on vacancy progression and/or likelihood of extension.
‘Below the line’ - Forecast of available GP not expected to be recognised based on vacancy progression and/or likelihood of extension.
Gross Profit - GP taken from Placement or Vacancy records.
Forecast Gross Profit - The GP multiplied by the applied weightings.