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Employee Cost Calculator

With the 'Employee Cost Calculator' (also referred to as a "labor burden estimator"), you can get a complete picture of the true cost of hiring a new employee. From compensation and benefits to recruiting, training, office equipment, and other costs, this easy-to-use calculator accounts for those typical expenses you may not necessarily think about when hiring a new employee. Simply use the default values provided, or enter your own numbers to come up with an effective hourly rate for your prospective employee.

Employee Expenses

The 'Employee Expenses' section of the 'Employee Cost Calculator' covers the following:

  • Total compensation costs, including annual salaries, commissions, overtime pay, and bonuses
  • Insurance costs (health, dental, vision, life, disability, and long-term care)
  • Mandated benefits costs, including Workers' Compensation, Social Security, Medicare, Unemployment Insurance, and FUTA Taxes
  • Work/life costs, such as Employee Assistance Programs, tuition reimbursement, and training
  • Recruitment costs, such as placement fees, job board costs, and relocation allowances
  • Office tools and allowances for computers, software, cellphones, cars, and gas expenses

Employee Utilization and Hourly Rate Costs

The 'Utilization and Hourly Rate' section of the 'Employee Cost Calculator' covers the following:

  • PTO (Paid Time Off) costs, including vacation, holidays, sick leave, jury service, and other leave
  • Overhead percentages, which include:
    • Overhead [Overhead is an estimate of the time your prospective employee will spend on activities such as setting up a computer or phone, attending to personal emails and calls, browsing the Internet, and personal interactions with coworkers.] 
    • Downtime [Depending on the type of position you are hiring for, you may wish to account for possible downtime between assignments while the employee is waiting for more work.] 
     
  • Other hourly deductions, including training, seminars, trade shows, and conferences

Employee Effective Hourly Rate

Lastly, the 'Employee Cost Calculator' will provide you with the 'Effective Hourly Rate' by dividing the 'Total Employee Expense' by the 'Total Productive Hours' in a simple, easy-to-read report.

 

 

Started Calculating the True Cost of Hiring a New Employee'

 


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