How much does labor really cost?

Do you know how much your employees really cost your business?

Many business owners and their managers know that employees “cost” more than their hourly wage, but few truly understand just how much more. Below is a cost breakdown analysis of an hourly employee being paid $9.00 per hour.

Mandatory Employer Costs

Thus, the “true cost” of the employee earning $9.00 per hour is actually $15.20 per hour…and these are only the most basic mandatory costs. Additional costs may include training, payroll administration and maintaining employee records.

Meanwhile, if you are constantly hiring and training new employees because of high turnover rates, your “true cost” of personnel is further impacted in a negative way. The loss of productivity during a position vacancy and the diminished productivity during a new employee’s transition period are significant costs. Many of our client partners have been able to reduce or even eliminate turnover costs by letting us find and supply them with specialized personnel who are already trained and/or have experience in the positions that are available.

Bergman Brothers Staffing & Consulting will help you to both manage, budget and reduce all of these costs by placing the appropriate personnel within your organization at a substantially lesser “true cost.” We can do this because we pay all of the additional mandatory employee costs. We also relieve inflated management costs associated with employees by recruiting specialized associates, conducting safety training, conducting human resources audits, and much more.