The salary is roughly two thirds of what a person costs. This works out the rest so hiring decisions and charge-out rates are based on the real figure.
What's Included
- Salary plus on-costs including employer contributions and insurance.
- Equipment, software, and space counted rather than assumed.
- A true hourly cost after holiday, sickness, and training days.
- An assistant that works out the charge-out rate you need.
How To Use
- Divide by productive hours, not contracted hours. The gap is large.
- Include software and equipment. Per person it adds up quickly.
- Use the true hourly cost when you price work, not the salary.
- Review it annually. Every input drifts.
Price the work with the labour cost estimator, and plan the team with human resources prompts.