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 see how much an employee costs your business and a (rather scary) idea of how much lost productivity costs.
It gives an accurate overall cost inc. National Insurance, employer pension contributions and other office/admin overheads and benefits.
1 minute per employee = ~£100
10 minutes per employee = ~£1,000
10 minutes with 10 employees = ~£10,000
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? Are there any other things in your business that take up unnecessary time? Any repeating processes that can be automated?
They very quickly add 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 in here may be too low. Add benefits e.g. healthcare to the salary as NICs will be due on them.
Note: most employees are only 70-80% efficient. The wasted costs figures are actually worse; losing 10 minutes out of the productive part of the 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! Scroll down for a video that takes you through the workings.
Also – feel free to check out our Downtime Cost Calculator which deals with downtime rather than lost productivity.
Video Run Through
(note we have upgraded the form and simplified the maths a little since this was done so it looks a little different)