Hidden costs of hiring

So, business is good and you are thinking about hiring staff. Please think again. It may be the best idea to hire full or part-time staff but make sure you have realised the full cost of an employee. It is much more than just a salary.

The most obvious is National Insurance and PAYE.

On any salary over £4,732 p.a., you have to pay 12.8% National Insurance. That works out to almost £1000 right there for the minimum salary.

And what about PAYE Income Tax? It could easily be another £1000.

Please make sure you or your accountant calculates the actual cost based on the details of the salary you plan on offering.

The next cost that many businesses aren’t aware of is… it is compulsory to get employer’s liability insurance. The minimum is £5 million cover. So please get a quote for the cost of your insurance before you even advertise a post. Advertising will be another cost we won’t go into here.

What about paid holidays? Full-time employees are entitled to at least 28 days a year. Part-time employees are entitled to a pro rata amount. Make sure you calculate the time you are paying them not to be there. Let’s not forget Bank Holidays on top of that.

What about sick time? Or time taken for training your employees in the first place? Then the time it will take to manage them, chase after them, and train them again any time your business changes or moves into a new direction.

Lastly, your employee has rights to paid maternity and paternity, to flexible hours, redundancy pay and time off in emergencies concerning dependents like children, etc.

It all is a bit scary. We can help. Using our support network means almost none of the above but all of the work done by people who know their niche.

Hiring large companies to outsource can run into thousands. We offer you a way to connect with people just like you who can help. Please contact us to learn more.

Posted in Good Business Practice, More Profit, Staff and Contractors, Work / Life Balance

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>