This table was produced by a group of Business students who were set the task of brain-storming the costs typically associated with employing someone under a contract of employment. It is not exhaustive. The costs become even wider when employing staff across an international company.
| Rewards | Recruitment Costs avoidable and unavoidable turnover plus new jobs. | Training Costs maybe offset by grants and tax allowances |
|
Salary/wage costs. Basic pay, bonus payments, overtime, supplementary payments, shift pay, dirt pay, etc, Merit awards, Temp replacements for holidays, sickness, etc. Benefits Car, car loans, mileage, insurance. Car park costs. Pension fund contribs. Luncheon vouchers/subsidised meals. Educational support for children. Office, telephone, loos. Subs. to professional bodies, Subsidised housing and travel, preferential Ioans, special mortgages, Season ticket loans. Share ownership schemes. Location/assignment weighting. Holidays: statutory, personal days, sabbatical, other discretionary paid days Statutory costs Nat. Insurance and pension contribs. Employers' liability + other levies |
Pre-recruitment Review of job specification and competencies. Line manager and agency briefings. Recruitment Prepare search schedule. External/internal advertising. Graphic design costs. Secretarial support, stationery, postage, letters, records and related admin. Agency/head hunting costs. Candidate evaluation Interviewing incl. travel, hospitality + "Milk" round. Interviewers and advisers. Selection tests and costs of admin. Inducements to move. Medicals prior to joining. |
Induction planning, new starter orientation.
Trainer/trainee pay + expenses. Travel and subsistence.
Books and materials.
Training centre/accommodation costs &
activity. Bought in training: fees and
consultants.
Design/maintenance of training programmes.
Open-learning materials. Videos, CD-ROMs. Management consultants. Stress counselling. Training reports. Staff appraisal costs. Counselling reviews. Assimilation costs (post-induction learners). Overheads until trainee fully experienced. Production losses from trainee in training Training admin. and secretarial costs |
| Re-Location Costs | Leaving Costs | Support Costs |
| Temporary and permanent. Hostel charges - long + short term. Disturbance allowances - Iegal fees, removal costs. House purchase and moving assistance. Temporary travel subsidy. Other travel, entertaining and background expenses not specifically allocatable to a project or job. | Statutory redundancy pay (less rebates). Redundancy admin costs. Out-placement costs. Death benefits Ex-gratia retirement payments (other than pensions). Liquidation of perks e.g. car. | House magazine. Social/sports club subsidies. Medical welfare schemes. Canteen, Xmas party. Safety facilities. Long service awards. Suggestion schemes. Music-while-you-work. Security services. Preferential purchase of goods schemes. Library and info. services. Private use of Co. resources (approved or illicit). rehabilitation/convalescent homes and holiday homes |
| Personnel Admin | Health and Safety | IR/Employee Relations |
| Personnel offices, fixtures and fittings. Communications and cleaning services. Photocopying. Staff records and computer systems e.g. decentralised and global. Salary admin: job specs. Staff planning activity and records. Salary review costs. Maintenance of industrial relations incl. consultative committees. Staff research project costs. | Safety officer. Training. Safety educational material. Safety inspections and risk assessment. Safety committee costs. Accident costs. Litigation. Damages. Occupational health services - doctors, nurses, first-aiders. protective clothing and devices. Issues and receipts of the latter | Industrial relations specialists. Consultation and negotiation costs. Costs of disputes. Disciplinary and unfair dismissal costs. |
