Oncost / cost of employing someone

[RichB]

As a really general guide what is the real cost of emplying someone? i.e. If I employed a computer programmer on £40k by th etime I have added on the cost of employers contrributions, national insurance, pension etc. what should I add on 50% ? Rich...

[davidd]

you also need to factor in a percentage of the overall cost to the business, such as rent, rates, power, insurance etc..

D

[JustinP1]

RichB said:

As a really general guide what is the real cost of emplying someone? i.e. If I employed a computer programmer on £40k by th etime I have added on the cost of employers contrributions, national insurance, pension etc. what should I add on 50% ? Rich...

It depends what you want to add into the factor on what are 'fixed costs' and what are variable.

For example if you are taking on someone to fill one of plenty free desks then this limits the scope. However, if you are in a serviced office where to have the extra space is costing you £250 a month, then this should be added as well.

Employer NICs are the main one, and you also need to make an allowance for sick pay and paid holidays.

If you are talking about the *total* cost you would need to work out if they are consuming more electricity etc and so forth, pens and paper etc, but Employers NICs are the main bulk.

[RichB]

That's really useful, thanks chaps...

[David_s]

RichB said:

That's really useful, thanks chaps...

It very much depends on the role, I budget £5k per month without bonus for external sales people on a basic of £30k. Employers NI costs, plus car, fuel, hotels and stuff.

[paoloh]

What about holiday, sick pay, maternity, paternity???? Oh my god, I'm going to be bankrupt very soon.

[V8 EOL - Rich]

Could you not contract for a year? That way you (and they) get the best of both worlds.

[virenque]

it would cost around £15k a year to employ someone to bum you senseless 3 times a week.

HTH.

[TDIPLC]

Maybe I'm odd but I think about it from the other perspective: What is the cost of NOT employing someone - how much business will I lose or how much will productivity suffer etc etc.

I had to make a decision recently whether to employ someone that was supplied through an agency. The agency fee was eye watering but they supplied the best candidate so although it cost a lot more to hire this guy, in the end it was a no brainer because I know he will be more productive.

Hope this helps a bit