A $11.00/hr general labor employee actually costs $15.63/hr, 42.05% above pay cost.
Hard costs alone on this employee are 48% of the pay cost. It should be noted that this total does not include the direct costs associated with recrui ng or legal risks, nor the expense associated with direct employment and general opportunity cost associated with pouring management resources into high-volume recrui ng and turnover management. Once the above factors are accounted for, it is clear that working with a strong sta ng partner is your most cost-e ec ve op on.
How much is your employee ACTUALLY costing you?
The cost of an employee to a company is substantially higher than one may think. The chart below details the actual employee costs hourly/yearly, once fixed costs and basic fringe benefits are factored in.
|HOURLY: 10.00 x 40 HRS/WK x 52 WKS||$22,880.00|
|Fed Unemployment (6.0% to $7,000)||$1,372.80|
|State Unemployment (3.2) Variable||$732.16|
|Workers Comp. Insurance|
|General Labor (Code 3632) & Rate 3.4% Variable||$777.92|
|Fringe Benefits Burden|
|(National average is 11.8%) Includes Insurance, bonuses etc. Excludes vacations, holidays, sick days, etc.||$2,699.84|
|Administrative Cost Burden||$2,288.00|
|Including all HR Functions and paperwork (National average is 10%)|
|Total Cost of Employee Per Year||$32,501.04|
|40 hrs./wk x 52 wks.||2,080 HOURS|
|Holidays||5 x 8hrs. = 40 HOURS|
|Vacation||5 x 8hrs. = 40 HOURS|
|SICK DAYS||5 x 8 hrs. = 40 HOURS|
|PERSONAL DAYS||2 x 8hrs. = 16 HOURS|
|TOTAL PRODUCTIVE TIME REALIZED||1,944 HOURS|