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How Much Does an Employee Really Cost?

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 You make $70k but cost your boss $88k – CNNMoney.com

MMChr & CNN Money

While that depends on benefits — and several layers of taxes — it typically ends up being 18% to 26% more than a worker’s base salary. It can be even higher for larger companies.

The extra costs are often cited by business owners as the biggest deterrent to hiring. Better sales might justify adding another $70,000 salary to the payroll, but in reality, that extra employee will probably cost closer to $88,000.

Anytime that Tony Knopp needs to calculate the cost of an employee, he adds another 20% to their salary. The CEO of Spotlight Ticket Management in Los Angeles said staffers “don’t understand how much we are investing in them.”

The extra costs are often cited by business owners as the biggest deterrent to hiring. Better sales might justify adding another $70,000 salary to the payroll, but in reality, that extra employee will probably cost closer to $88,000. Anytime that Tony Knopp needs to calculate the cost of an employee, he adds another 20% to their salary. The CEO of Spotlight Ticket Management in Los Angeles said staffers "don’t understand how much we are investing in them."

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Article originally published on CNNmoney.com.  MMChr outsourcing services provides strategic workforce management support for businesses. Contact us to get more information regarding our HR outsourcing services. 888.866.2476