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The True Hidden Cost of an Employee

October 7, 2024by People First0


Well, to calculate what the actual true cost of an employee, it depends upon the organization. So I can’t give a general, it’s 30%. When it comes to looking at your employees and what they’re actually, it’s not their salary. You don’t look and say, well, I’m going to pay them $50,000 a year. That’s what it’s going to cost me.

You’ve got employer taxes, you’ve got unemployment, you’ve got workers comp. You’ve got PTO, you’ve got benefits, you’ve got all these things, you’ve got the time that they’re off and it could conceivably cost you about 30% more so that $50,000 a year employee might be costing you really $65,000.

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