How Much Does an Employee Cost and How Much is Wasted?
Have you ever wondered how much an employee costs your business? How about how much money is wasted on just 10 minutes of lost time per day? Use this employee cost calculator to get a (rather scary) idea of how much lost productivity costs your business.
It also gives a pretty accurate overall cost inc. National Insurance, employer pension contributions and other office/admin overheads and benefits.
10 Mins = £1,000 – or worse!
The defaults below show how one employee on £35k losing just 10 minutes a day equates to nearly £1,000 in wasted costs a year.
Think about those old PCs that take a few extra minutes to boot up or restart. What about inadequately resourced machines taking a few seconds longer to load a document or spreadsheet?
It very quickly adds up to a significant amount of time.
The cost of a new PC would be offset in the first year, let alone the 3-5 year lifespan of a decent machine. It really makes no sense allowing any of your staff to lose even 2 minutes a day to inadequate systems or processes.
Try to think of other aspects of your business where your staff are not as efficient as they could or should be. Written SOPs (standard operating procedures) and other things that save a few minutes or seconds here or there are so incredibly important. Here are some of the unseen £££ going missing.
Also bear in mind the fact that the income generators in your business are almost certainly backed up with back-end staff e.g. Accounts and HR so their overheads may be more than you think. The £5k default (inc benefits e.g. healthcare, cars etc.) in here may be too low.
Note: most employees are only 70-80% efficient. The wasted costs figures are actually worse; losing 10 minutes out of a 70-80% day is worse than losing 10 minutes out of a 100% day. The maths below doesn’t factor this in.
Play with the figures on our bespoke employee cost calculator – it is a bit of an eye opener!
Also – feel free to check out our Downtime Cost Calculator which deals with downtime rather than lost productivity.