CNN Money has an interesting article on Why a $14.00 hour employee costs $20.00. The true cost of an employee is about 40% more than the base pay. This so-called “loaded rate” includes fixed expenses, federal and state taxes, health insurance, workmans’ compensation, uniforms, and paid time off – along with soft costs like time spent training a new hire.
It’s very hard to convince business owners to hire until they’re absolutely certain they need to. Employees are often the most expensive investment a business makes.
Many businesses’ existence revolves around two numbers, revenue and payroll. Payroll can often be up to 70% of a firm’s operating costs.
To read more on this excellent article in CNN money Click here
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