How To Calculate Sales Capacity in Workday | Arithmix

Calculating sales capacity is an important task for any sales team. It helps you understand how much work your team can handle and how much revenue they can generate. In this article, we'll discuss what sales capacity is, when it's valuable to calculate it, and how to do it effectively.

What Is Sales Capacity?

Sales capacity refers to the maximum amount of work that a sales team can handle within a given period of time. It takes into account the number of sales reps on the team, their productivity levels, and the amount of time they have available to sell. Essentially, it's a measure of how much revenue your team can generate based on their current resources.

Calculating sales capacity can help you make informed decisions about how to allocate resources, set goals, and plan for growth. By understanding your team's capacity, you can avoid overloading them with work or underutilizing their skills and expertise.

When Is It Valuable To Calculate Sales Capacity?

Calculating sales capacity is valuable in a variety of situations. For example, if you're planning to launch a new product or service, you'll want to know if your sales team has the capacity to handle the increased workload. Similarly, if you're considering expanding your sales team, you'll want to understand how much additional revenue they can generate.

Calculating sales capacity is also useful for setting realistic sales goals and tracking progress. By comparing your team's actual sales performance to their capacity, you can identify areas for improvement and make adjustments as needed.

How To Calculate Sales Capacity

Calculating sales capacity involves several steps:

1. Determine the number of sales reps on your team
2. Estimate the amount of time each rep has available for selling (excluding administrative tasks, meetings, etc.)
3. Calculate each rep's productivity level (i.e. how much revenue they generate per unit of time)
4. Multiply the number of reps by their available selling time and productivity level to get the team's total sales capacity

For example, if you have 10 sales reps who each have 20 hours per week available for selling and generate an average of $5,000 in revenue per hour, your team's total sales capacity would be $10 million per year (10 reps x 20 hours x $5,000 per hour x 52 weeks).

Keep in mind that sales capacity is not a fixed number. It can fluctuate based on factors such as changes in team size, productivity levels, and available selling time. Therefore, it's important to regularly recalculate your team's capacity and adjust your plans accordingly.

In conclusion, calculating sales capacity is a valuable tool for any sales team. By understanding your team's capacity, you can make informed decisions about resource allocation, goal setting, and growth planning. Follow the steps outlined in this article to calculate your team's capacity and use it to drive success.

How Do You Calculate Sales Capacity in Workday

Workday itself isn’t naturally geared towards letting you calculate complex metrics like Sales Capacity. As an alternative, teams typically use products like Arithmix to import data from Workday and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Workday, combine it with data from other systems, and create calculations like Sales Capacity.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Sales Capacity in Arithmix

Calculating metrics like Sales Capacity is simple in Arithmix. Once you've created your free account, you’ll be able to import your Workday data, and use it to create natural language formulas for metrics like Sales Capacity.

Arithmix is designed to give you the power to build any calculations you want on top of your Workday data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.