We are midway through the year now and hopefully everyone in business is busy and productive. Perhaps you may even be fortunate enough to be too busy and you are contemplating hiring additional staff to ease some of the pressure.
While you may be considering the cost of the additional salary or wages and the initial costs involved with job advertising and screening, there may be a number of costs, both one-off and ongoing, that you have not allowed for. For instance:
- your ACC Workplace Cover levy, employer KiwiSaver contributions, industry insurance and/or FBT may be impacted
- recruitment costs, which may include agency fees and ability testing costs, as well as time spent interviewing
- training (will your new employee require extensive in-house training?) and setup (will your new employee need a workstation, tools or a uniform?)
- increases to overhead costs such as utilities, travel expenses and phone bills (will your new employee require a cell phone?)
- employee benefits such as annual or performance-based bonuses, health insurance or staff food and drink
MBIE (Ministry of Business, Innovation and Employment) have a free online calculator which allows you to evaluate the annual fixed and discretionary costs involved in taking on additional staff. If the result indicates the costs are greater than you anticipated you can reassess and fine-tune the calculator to meet your requirements - for instance, reducing from full-time to part-time. This means you are informed and prepared before a single dollar is even spent!
You may also be eligible for grants, subsidies or incentives - talk to us today for expert advice on employment matters.
To use the calculator visit the MBIE website on the link below: