This is a great reminder to business owners as well as employees that the costs associated with owning a business, or being employed is much more than we think. This article talks about the extra amount employers pay to keep a human employed. I call it labor burden, which is all the “other stuff” your boss has to cough up in order to keep you employed. So, the next time you (employee) feel overworked, stressed because of work, or you feel underpaid…just quit. It’s probably better for all because at the end of the day, employees are the most expensive variable expense a business has. Rather than being a pain in the ass about working conditions, try helping out more by figuring out how to cut costs, not human costs, just operation costs, how to do things better, more efficiently. Remember, at least you still have a job to complain about.
And for business owners, if labor burden gets to you, don’t just fire people, reorganize the business to make it more efficient and effective. It can be done, I do it all the time. Recognize those human costs and get your monies worth from the humans by maintaining a structured and well organized business. Be a leader.
Read this article, it’s interesting
By Catherine Clifford, staff reporterMarch 28, 2010: 9:25 AM ET
NEW YORK (CNNMoney.com) — You probably cost your boss a lot more than you think you do.
For Jim Garland, who owns a corporate aircraft cleaning and support services company, a $14 per hour worker has a true cost of $19.63 per hour, or about 40% more than base pay. This so-called “loaded rate” includes fixed expenses — federal and state taxes, health insurance, workman’s compensation, uniforms, and paid time off — along with soft costs like the time spent training a new hire.
Read More at CNNMoney.com