Do you know your true labour costs?

Most people understand that the agreed hourly rate or salary paid to an employee is just the start when it comes to determining the actual cost.  As you start adding in leave entitlements, Kiwisaver, training, ACC etc, the costs start going up and up.  It’s really important to know the real cost of employing staff, especially if you are in the Construction Industry where you are applying a margin to your Labout Costs in order to work out a profit for a job.

The below shows that with an hourly rate of $20 per hour if all possible options are utilized, the true cost is more like $27.89 per hour.

You can have a play with our Labour Cost Calculator here, and if you are interested in a more detailed analysis of Labour Costs, check out Labour8.

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