Pro-rating the allowance for a new hire
How a new employee's benefit allowance is reduced to the part of the benefit period after their start date, where your company's default comes from, and how to give one person the full year.
When you add an employee partway through the benefit year, they usually should not get a full year's allowance. CLVR handles this by pro-rating: it reduces the new hire's benefit allowance in proportion to how much of the current benefit period they will actually be with the company. Your company decides whether new people are pro-rated by default, and you can still give one person the full year when you add them. This article explains where that happens, how the amount is worked out, and when to switch it off.
Your company's default
The starting point for every new person is the Pro-rate for new employees setting under Joining and leaving on Allowance settings in your HR settings: "Someone starting in September gets the part of the cycle they are actually here." A change to the setting applies to the next person you add.
Pro-rating only has an effect when your company has a base allowance greater than zero. If your base allowance is zero, there is nothing to pro-rate.
When you add people here
On Add employees, under Add them here, the Allowance column shows what each person will get for the current period. Each row starts from your company's default. When the start date falls partway through the period, a tag sits next to the amount:
- Pro-rated: the allowance covers the part of the period from the start date. Select the tag to give this person the full year instead.
- Full year: the full yearly amount. Select the tag to pro-rate it again.
The amount changes as soon as you change the Start date, so you can see the result before you add anyone. A later start date means fewer days in the period, and therefore a smaller allowance. A start date at or before the start of the period always gets the full amount, so it has no tag.
The review before you add people lists each person's allowance again, so you can check it once more.
When you import a file
When you import new people from a file, their allowance follows your company's default. The preview shows the amount under each new person, for example "1 798 kr pro-rated".
How the amount is worked out
The benefit period is always one year, ending on your company's allowance reset date and starting one year before that. A new hire's pro-rated allowance is the full allowance multiplied by their share of the period: the days from their start date to the end of the period, out of all the days in the period. So the closer their start date is to the reset date, the smaller their first allowance. At the next reset they move to the full base allowance like everyone else.
Once the person is added, the Adjustments tab of their side panel starts with a line that shows the working, for example Pro-rated: 11 000 kr / 365 days Ă— 90 days = 2 712 kr.
Adjusting an existing employee instead
Pro-rating applies when you add a brand-new employee. It is not the tool for changing someone who is already in CLVR. To add to or deduct from a current employee's allowance, open their side panel and use Add or deduct on the Overview tab, or choose Adjust allowance in their row's â‹® menu in the employee list. Either changes their allowance for this year only. For a lasting change, edit their benefit allowance.
Troubleshooting
- The Allowance cell has no tag. The start date is at or before the start of the benefit period, so the person gets the full year anyway, or your base allowance is zero.
- The amount looks too high or too low. Check the Start date: the allowance scales with how much of the period remains after that date.
- A new hire should get the full amount. Select the Pro-rated tag so it says Full year before you select Review and add.
- Every new hire should get the full amount. Turn off Pro-rate for new employees on Allowance settings.
- I need to change someone already added. Use Add or deduct in their side panel rather than adding them again.