20 Jun NEW EMPLOYEE LABOR COSTS
Is hiring a struggle for you – or should I be more specific – is hiring good employees a struggle for you? We hear it all the time that it is so difficult to find good employees. We tell our clients they should always be on the lookout for good employees/labor – ones that will actually stick around after they are hired or actually do the work they were hired to do or my favorite is actually show up to work.
But you know me by now…what is one of the first things that I’m going to ask you? Do you know your numbers… can you afford that employee? So many business owners are quick to say they want to hire a new employee; but no one knows what that employee will cost them. Can you afford that employee? How much revenue does that employee have to generate to pay for themselves?
When hiring a new employee it takes time and money to train that employee. You invest a significant amount of both for the first year of employment. Is your business able to handle the financial stress?
The Apex eSuite Burdened Labor Costing SaaS provides you with the ability to create “What If” scenarios to answer those questions.
How much are you able to offer as an hourly wage with benefits? This is critical! Not knowing is like jumping out of a plane without a parachute! As we have learned throughout this blogging series “Know Your Numbers”!!! Hiring a new employee isn’t any different.
You are able to enter all different “What If” scenarios into the Apex eSuite to know how much you are able to offer for an hourly wage, what level of benefits, what vehicle that employee can support, and how long that employee has available in training before they have to start paying for themselves. Now let’s take a moment to think about that last one – how long does that employee have available before they have to start being revenue producers? Critical – absolutely critical!
Let’s take that one step further, let’s extend this to all of your employees.
There are a multitude of changes that you may be contemplating that will affect both new and/or existing employees:
- New equipment
- New vehicle
- New building
- New Indirect employee hire (fire)
- New Direct employee hire (fire)
- Raise for any employee
All of the above have a direct effect on the Burdened Labor Cost for your direct employees. Work your numbers – Know your numbers. Be confident in your numbers before embarking on change! Enter all of your numbers into the Apex eSuite – work your What If scenarios as many times as you would like – it is limitless. The answers are there for you.
Entering your numbers in the Apex eSuite you know they are your numbers, that the answers you receive are real numbers not estimates or maybe’s.
The Apex eSuite Burdened Labor Costing SaaS was developed much like Turbo Tax – the program tells you when and where to enter your numbers. The program grows with your business. If you make any of the changes above the program tracks those changes, when entered correctly provides updated Burdened Labor Costs for each direct employee.
There is a way to predict what your business can handle financially. Applied Management Group is here to assist with any questions you may have while working your numbers and how to make those numbers work for you. We have the answers.