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albertofenini · (This post was last modified: 01-04-2022 04:43 PM by albertofenini.)

Hi Max

the use of an HP65 was just for the fun of it Smile

But you are right, an HP80 or any native financial calculator will do better for these kind of problems

I'll go get my HP-80
At the end this problem is very similar to that of a bank deposit revaluation with yearly growing interest,
is this you mean with TMV ?

The idea of giving free time is also excellent and I'm sure it will definitely used

Hope we are not going too much off topic ...

thanks a lot and take care

(01-04-2022 04:21 PM)Maximilian Hohmann Wrote: Hello Alberto,

(01-04-2022 01:49 PM)albertofenini Wrote: Let me tell you that this is by no mean thought to save money on employees shoulders ...

No worries, I did not understand it that way :-) But for most employees their salary is really vital for every aspect of their life, so the idea that it gets calculated using a toy calculator (by today's standards) is somewhat intriguing.

(01-04-2022 01:49 PM)albertofenini Wrote: ... and check that is sustainable.

Then even more so I would not entrust the well-being of my company on 50 year old self-restored calculators!

(01-04-2022 01:49 PM)albertofenini Wrote: Using a formula is much more effective rather than doing the match each time

In your case with discontinuos input values it will not be easy to derive an equation that takes care of everyting. Your algorithm will have to take a list of values (bonus or pay rise for every year with the company) as input. The HP65 is not really suited to do that, especially if you expect your employees to stay with your company throughout their entire career (i.e. 40 or 45 years). It only has 9 memory registers some of which you will need for your calculation also. One solution that you already suggest would be a steady increase every year. You can easily calculate that by replacing your HP65 with an HP80 and using it's built-in TVM functions. (Or both cases, steady and discontinuos, with a little copy-pasting within an Excel spreadsheet - which still would be my choice of tool.)

(01-04-2022 01:49 PM)albertofenini Wrote: ...the earning for the guy is 10500+11000+12000+13000+14500+16000 = 77000
versus 10000*6 + 6000 (the sum of the bonus) = 66000

If I were the employee I would know what to choose, same as if I were the employer.

(01-04-2022 01:49 PM)albertofenini Wrote: Any suggestions is very welcome !

One thing comes to mind: Although I have lived and worked in Italy for more than 20 years (not really far away from you) that was not under the Italian taxation. I always paid my taxes in Germany. Here, bonus payments at the end of the year are something one tries to avoid as an employee since they are heavily taxed. I would prefer a 50 Euro montly increase over a single 1000 Euro bonus in December (even if on paper it almost looks like double). But in the end (i.e. after taxes) I will have about the same amount of cash in my pocket plus a better pension because of the higer monthly income. But I really don't know if that applies to Italy as well.

And one more (rather personal) thing that could motivate me to stay with my employer: Instead of a bonus or rise of salary, I would always prefer more free time instead. So for me, the most welcome thing would be one more day of holidays for every year with the company (or one hour less of work per week). Some companies here do it that way and it makes it very hard for long-time employees to leave.

Regards
Max