Employment calculator

How much does that extra employee cost you?

Managing your finances in-house doesn’t always add up.

Try the EFM Employment Calculator now!

Our cost calculator will determine the real cost of employment to your business.

  • Take the annual salary you would expect to pay for a book keeper, financial controller or financial director and enter this in the salary box below
  • Alter any of the costs that are not in line with your company’s benefits package (such as company car/allowance)
  • In particular, consider utilisation and how much time your finance staff actually spend on finance matters
  • NB: The assumptions made have been calculated using information provided by the National Office of Statistics and published research.

  • Please fill in your details, so we can email your score.

    Your personal data will be used to send you the information you have requested and is processed in accordance with our privacy policy.
  • Please enter the salary figure you will be willing to offer your potential full-time employee.
    Please enter a number greater than or equal to 0.

  • Additional costs and considerations

    • There is a huge cost associated with providing and managing staff benefits - medical insurance, bonus or profit sharing rewards, company car, mobile telephone, staff discount, staff entertainment, critical illness, life assurance, share options
    • Significant tax compliance reporting requirements
    • Higher risk of getting on the wrong side of the HMRC
    • Burden on HR team to administer
  • Please enter current National Insurance rate.
    Please enter a number from 0 to 25.

  • Additional costs and considerations

    • Outsourcing reduces the risk of non compliance
    • Current employers national insurance contribution is 13%
    • Administration of salary and NI also has a cost
    • Class 1A NIC on benefits
  • Please enter pensions contribution
    Please enter a number from 0 to 30.

  • Additional costs and considerations

    • Employers are now required by law to automatically enrol all eligible workers into a workplace pension and make a contribution to it. The date workers are enrolled (staging date) depends on the size of the company they work for and this is being rolled out over the next few years starting from 2012 for large employers to 2017/2018 for new employers.
    • Pension administration and legislation is becoming the biggest red tape headache for small companies including regulatory issues if it is done wrong.
    • This will increase employer liability and it is wise for companies to start some form of financial plan as this will affect cashflow.
  • Please enter benefits figure.
    Please enter a number from 0 to 100.

  • Additional costs and considerations

    • There is a huge cost associated with providing and managing staff benefits - medical insurance, bonus or profit sharing rewards, company car, mobile telephone, staff discount, staff entertainment, critical illness, life assurance, share options
    • Significant tax compliance reporting requirements
    • Higher risk of getting on the wrong side of the HMRC
    • Burden on HR team to administer
  • Please enter overheads figure
    Please enter a number from 0 to 100.

  • Additional costs and considerations

    • Overheads are not only the fixed salary cost but include items, such as office equipment, IT and office space. They also include variable costs such as management, assessment time and training, consumables, Personnel and administration
    • Others include liability insurance (and cost of getting it wrong in the first place), depreciation on capital equipment and administrative overheads
  • Enter the percentage recruitment cost
    Please enter a number from 0 to 100.

  • Additional costs and considerations

    • Recruitment costs you money every time you want to procure people
    • There is an element of risk in employing an unknown
    • Recruitment fees (on average 15-30% of gross salary)
    • Recruitment fees are only one part of the equation (see below)
    • Management and interviewers time
    • Advertising costs
    • Re-hires for those times when the hired personnel just did not work out
    • Personnel administration
  • Include utilisation rate if different from the default rate of 60%.
    Please enter a number from 0 to 100.

  • Additional costs and considerations

    • Staff are rarely utilised 100% in their core function. A typical utilisation figure is substantially less than 100% and in most cases may be nearer to 60%. See our survey results.
    • Distractions include meeting, phone calls, spam emails, social media, surfing, talking to co-workers, refreshment breaks, self-directed learning, resignations, approved absences and other activities that result in unproductive time
    • Time lost through attendance at company meetings, social events, etc
    • Time involved in work that is not part of the recruited function
  • Include the number of sick or holiday days if different from the default number.

  • Additional costs and considerations

    • Holidays not only cost you money - they also often occur at your busiest time 
    • The risks involved with single key personnel becoming ill is a major stress point 
    • Employees took an average of 6.4 days off through  sickness in 2009. 
    • Absence costs average £595 per worker (CBI study 2009)
    • Increased maternity and paternity rights to the detriment and cost of the employer
    • Missed deadlines, delayed work output
    • Decrease in customer care levels
    • Procedural and administrative barriers through absence
    • Cost of holiday/sickness cover 
  • The daily cost has been calculated taking into account the standard costs associated with a new member of staff including gross salary, National Insurance, Pension, profit/share schemes, recruitment costs, and general overheads. It also recognises some other hidden costs which dramatically increase your company’s overall expenditure when recruiting a permanent employee, giving a truer comparison between the costs and benefits of the resource options available. The number of days worked takes into account -annual leave, Public holidays, approved absence, sickness (average 6.4 days per worker, CBI study 2009) and non-utilisation

    Now that you are aware of the true cost of an employee, you may realise that there must be more effective and efficient solutions available. Why not consider a solution where the cost will be significantly reduced by taking on one of our experts for a few days a month who will be fully utilized for the period they are working for you, instead of full time employee for every working day of the month.

    A cost effective option

    You will pay only a fraction of the cost of a full time employee, and you can ask us now about our daily rates which range from about £250 to £800 for varying service levels. This in some cases , is all you need to pay in a month. Depending on the nature of your business and your budget, we will agree the most suitable solution, the frequency and level of support that your business requires.

    To find out how effective your business could be with our cost effective solutions, see our range of solutions now: Part Time Finance Director, Part Time Financial Controller, Part Time Assistant Accountant, Part Time Bookkeeper and other services.

    What Our Solution Offers In Comparison:

    • EFM offers a secure user-friendly online service to input basic financial data
    • Secure access to financial data anywhere, at any time to nominated parties
    • Improved financial control and savings in fixed overheads
    • Eliminates need to buy and support an accountancy software package
    • Peace of mind that all of your business critical financial data is being managed and processed efficiently in a secure and confidential environment
    • You would have a team of experienced financial experts working as part of your team

    To request a call back now, please email clientcare@efm.uk.com or call us on 015582 516300/ 0845 129 9900

  • Thanks for taking this healthcheck, your results will be sent by email.

    You can contact one of EFM’s Finance Directors on 0845 129 9900, or request a call-back to discuss this in confidence.

  • This field is for validation purposes and should be left unchanged.

“I would say that costs for us were definitely reduced using EFM but conversely the level of advice we got was far higher than I could have afforded to recruit and retain.”

J Hofton, Partner, SPD

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