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What is the true cost of employing staff?

Let's look at costs associated with office-based admin work.

Average annual salary and wage rates

To define the full cost of employing someone, you need to include all possible costs, such as  ACC, KiwiSaver, infrastructure costs, consumables (tea, coffee, toilet paper etc),  leave, and so on.

Compliance costs per employee

Each year Business New Zealand in conjunction with KPMG conduct a survey to establish the compliance costs businesses face. This is the cost of administration time required to keep up with legislation, changes made by government or local government policies and then implement them. For businesses with less than 10 full time employees compliance costs average $3057 per employee per year (2008).

Cost of employees office

What about setting up an employee in your office? And the office overheads?
• Desk, chair, filing cabinet, computer hardware, computer software, phone
• Their share of the overheads (ongoing insurance, depreciation, power, phone, internet, and consumables like paper, toner, coffee and toilet paper)  
• Their workspace to occupy in your premises and share of common areas (ongoing rent and rates)  

So what do employees really cost?

If you are paying someone $40,000 they actually cost you over $65k!  Perhaps now is the time to consider outsourcing your administration services at a fraction of that cost to BOSS Group.