SmartHelping / HR Planning / Excel
HR Tool: Financial Analysis of Layoffs
Estimate the financial impact of planned headcount reductions. Compare compensation savings with continuation and separation costs, then review net current-year savings and annualized savings by department.
Immediate download after purchase. By purchasing, you agree to the Terms of Service.
Video walkthrough & spreadsheet preview
See how the financial analysis works.
Two ways to build the analysis
Start with department averages or employee-level detail.
Use the level of detail that fits the information you have available. The template can also be expanded for additional departments or employee slots.
Department-level model
Enter department names, headcount reductions, and average compensation and separation-cost assumptions. The standard layout includes up to 20 departments.
Individual employee model
Enter each employee’s details and department. The information rolls into a department summary with the same financial outputs as the general model.
Editable assumptions
Bring compensation and separation costs into one view.
Departments and headcount
Enter department names and the number of planned headcount reductions in the general model, or assign individual employee records to their departments.
Annual compensation
Set average annual salary, annual bonus, benefits cost, and other annual headcount costs.
Payroll taxes
Enter the payroll tax percentage used in the compensation-cost calculations.
Pay continuation
Enter the number of pay continuation weeks to include in the estimated transition costs.
Insurance continuation
Enter COBRA continuation weeks and weekly insurance costs for the financial assumptions.
Other separation costs
Use two additional separation-cost inputs to capture costs beyond the pay and insurance continuation assumptions.
Financial outputs
Separate near-term costs from ongoing savings.
Annual, monthly, and weekly compensation
Review total average annual compensation costs and the corresponding monthly and weekly averages.
Expected savings by year end
Estimate the compensation savings for the remaining portion of the current year.
Continuation costs
Review the modeled continuation costs alongside the expected savings.
Net current-year savings
See the net current-year financial impact after the modeled transition costs are accounted for.
Annualized savings
Review the expected annual savings moving forward, separately from the remaining-year result.
Department totals and visualizations
Review the outputs by department and in total, with visualizations of expected annual savings by department.
Getting started
Build a clear view of the financial impact.
Choose the level of detail
Use the department-average model for a general financial estimate or the individual-employee model for a more detailed input schedule.
Enter the compensation assumptions
Add the relevant department and headcount information, annual compensation components, and payroll tax percentage.
Add the transition costs
Enter pay continuation, insurance continuation, weekly insurance cost, and other separation-cost assumptions.
Review the financial impact
Compare current-year savings, continuation costs, net current-year savings, and annualized savings by department and in total.
More templates in one purchase
Explore the bundles that include this tool.
Additional resource
Explore another savings calculator.
Questions before you start
A few useful details.
What does this tool calculate?
It estimates the financial impact of layoffs, including compensation costs, expected savings by year end, continuation costs, net current-year savings, and annualized savings.
Can I model individual employees?
Yes. The individual-employee section lets you enter employee details and departments, then rolls the results into department summaries.
Can I use department averages instead?
Yes. The general model accepts headcount reductions and average compensation and separation-cost assumptions by department.
How many departments are included?
The standard department-level layout supports up to 20 departments. The template can be expanded if more departments or employee slots are needed.
Does the model distinguish current-year and annualized savings?
Yes. It reports the expected financial impact for the rest of the current year separately from expected annualized savings moving forward.
Can I include continuation and separation costs?
Yes. Inputs include pay continuation weeks, COBRA continuation weeks, weekly insurance costs, and two other separation-cost fields.
Are department summaries and charts included?
Yes. The results appear by department and in total, with visualizations showing expected annual savings by department.
How is the tool delivered?
The $45 one-time purchase provides an immediate Excel download. It is also included in the bundles listed above.
HR financial planning
Understand the costs and savings on one clear financial basis.
HR Tool: Financial Analysis of Layoffs — $45, one-time purchase.
