Do you know the true cost of employment to your business?
Deciding on the right person to employ for your business is a difficult enough task without facing the tasks of sorting out legal and financial responsibilities – they all too often come at a price.
How much does each employee cost your business?
Most employers can readily tot up how much each employee costs based on salary and NI but many employers could double the amount in hidden costs.
If you the employer has a better understanding of all the associated employment costs and understand tax benefits you’ll greatly improve the stability, sustainability and profitability of your business.
Costs associated with employment
Take a look at the list below of costs associated with employment. You may be aware of some or all of them but can you apply a business cost to them?
- Pension – Auto Enrolment
- Rewards and additional company benefits
- Employers liability insurance
- Software licences
- Training costs
- Computer maintenance
- Maternity/paternity leave
- Holiday pay
- Sick Leave
- Jury service
- Redundancy
- Unfair dismissal claims
How to manage employment costs and still grow your business
To grow your business confidently with the right people working for you first establish the skills and experience you require from staff to help you reach your business goals.
Have a clear understanding of how much you can realistically afford to pay and what company benefits you can offer to attract the very best people to your business.
Look at alternative ways of easing staffing costs such as Government employment schemes and grants.
Seek expert financial, legal and human resources advice to ensure you can afford long term employment costs, fully maximise all tax benefits and cover any potential liabilities associated with employing staff.
How to safeguard your business?
To safeguard your business you need to plan ahead and ensure you’ve enough spare money to deal with unexpected eventualities such as unfair dismissal claims or new Government employment legislation such as recent Auto Enrolment Pension changes.
How Murrison & Wilson helps businesses manage employment costs?
Without careful planning employment costs can spiral out of control and jeopardise your business.
At M & W we offer a range of services to help businesses to continue to expand at a suitable pace.
1 Business planning – a robust plan that helps with long term recruitment costs aiding company expansion
2 Tax planning – work within HMRC rules, maximise your benefits and help your staff
3 Managing payroll – easy to use payroll system that saves time, money and is Auto Enrolment compatible
4 Identify and control cost per employee – combine business planning, tax planning and payroll to identify cost per employee to manage future costs
5 Gain competitive edge – be able to offer industry best salary and benefits to attract the best people before your competitors snap them up
What’s the next step?
If you’re planning to expand your business and looking for advice on managing your employment costs or any other aspects of business or tax planning call on 0141 290 0262 or email or connect via LinkedIn or Twitter.
Best wishes
Simon