Calculating Labour Costs To Remain on Budget

May 10th, 2013

In order to determine if you are in fact hiring the proper number of staff to work, not just to get the job done, you need to calculate your labour costs. This will determine if in fact your overhead costs are equal to what you are paying your employees.

If your labour costs are too high, then you need to look at making reductions, as overall you are not walking away with reasonable earnings. Cutting down on expenses doesn’t need to mean cutting own on staff, provided it reduces your overall costs. Simply ensure that your earnings potential is higher. The recommended labour cost percentage depends entirely upon your industry, and the extent of time that you have been in business.

Peter Morrissey has been working with employee time and attendance for more than 15 years, Peter has supplied more than 3000 customers around the world with employee time management systems. He has seen the good, the bad and the ugly. Peter bought the JobClock system into Australia in 2008 to fill a void not being covered at the time. As cloud technology has come along the JobClock system not only services construction but many more industries hungry for employee labour costing information.

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