> For the complete documentation index, see [llms.txt](https://help.modelreef.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.modelreef.io/help/drivers-variables-and-timing/staff-variables.md).

# Staff Variables

This article explains **Staff variables** in Model Reef.

You will learn:

* What a Staff variable represents.
* How Staff variables handle salary, oncosts and timing.
* How Staff costs affect P\&L, Balance Sheet and Cashflow.
* Patterns for modelling headcount, wages and payroll related costs.

Staff variables are a specialised type of Opex variable with payroll aware behaviour.

***

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### What a Staff variable is

A **Staff variable** represents employee related costs, for example:

* Salaries and wages.
* Superannuation or pension contributions.
* Payroll taxes.
* Bonuses and commissions.
* Other employment oncosts.

Staff variables are usually structured around:

* Headcount or FTE drivers.
* Average salary or cost per head.
* Oncost percentages for super, pension and payroll tax.
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### How Staff variables use drivers

Typical Staff formulas include:

* `Staff Cost = Headcount * SalaryPerHead * OncostFactor`.
* `Headcount = BaseHeadcount + NewHires - Leavers`.
* `CommissionCost = Revenue * CommissionRate`.

Where:

* Headcount, salary and commission rates are drivers.
* Wage inflation may be represented by a separate economic driver and applied as escalation.

This keeps pay structures and headcount planning visible and adjustable.
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### Staff costs in the P\&L

In the **P\&L**:

* Staff variables reduce EBITDA.
* Staff lines are usually separated from other Opex to highlight labour intensity.
* You can break Staff variables into categories such as `Staff - Engineering`, `Staff - Sales`, `Staff - Operations`.

This structure supports analysis of staff cost by team, function or region.
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### Staff payables, timing and cash

In the **Balance Sheet**:

* Staff variables create payables if wages, super or payroll tax are paid after they are accrued.
* For example, salaries accrued in a month but paid at month end or in the following month create a short lived payable.
* All Staff related timing differences are reflected in the same Accounts Payable bucket, with category detail available for drill down.

In the **Cashflow Statement**:

* Staff variables contribute to **Payments to suppliers** (operating cash outflows).
* The timing reflects pay dates and employer obligations rather than accrual timing.

The timing engine ensures that Staff costs line up with payment cycles realistically.
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### Headcount and capacity modelling

You can combine Staff variables with operational drivers to build capacity models, for example:

* `CapacityHours = Headcount * HoursPerFTE`.
* `RequiredHeadcount = WorkloadHours / HoursPerFTE`.
* Linking required headcount to hiring plans and Staff cost variables.

This supports modelling of:

* Hiring ramps.
* Capacity constrained growth.
* Productivity improvements.
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### Scenario work with Staff variables

Scenarios often differ in Staffing assumptions, for example:

* Aggressive hiring in Upside scenarios.
* Hiring freezes or slower replacement in Downside scenarios.
* Different bonus schemes or commission structures.

Because each scenario is a separate model, each can have its own Staff drivers and variables while reusing the same structure.
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***

## Related articles

* [Staff Rostering & Labour Planning](/use-cases/hospitality-groups-multi-venue/staff-rostering-and-labour-planning.md)
* [Build Scenario Aware Data Overrides](/how-tos/data-workflows-and-automation/build-scenario-aware-data-overrides.md)
* [Tax Variables: what is, rules, what it affects](/help/drivers-variables-and-timing/tax-variables.md)
* [How Input Fields Work](/syntax/how-input-fields-work.md)