Calculating Labour Costs

When it comes to charging out labour how do you know what to charge?  What is the bottom line?  When running a company that derives a high portion of its income from Labour then it is imperative that you know the true cost of that labour.

Most companies have a reasonable guesstimate of what it costs, but very few have detailed accurate breakdowns on how to arrive at this figure.

What then are some of the key points that need to be taken into consideration when calculating the TRUE cost of labour?

There is now no need to guesstimate labour cost as there is now a simple but powerful software program “LabourCalc” that will assist you in the detailed and accurate calculation of your labour force cost. When you join NECA SA/NT, you will receive a free copy of the LabourCalc CD from Spearhead Software in your New Member Kit. Subsequent copies of the CD are available to members for $25. Please note that LabourCalc 1 is ideal for companies with 1-2 people. Members can upgrade to LabourCalc 2, designed for all companies with a range of number of employees, for $99, normally priced at $250. To read more about calculating labour costs, members can simply log in to download this helpful resource. For futher information, please contact the NECA SA/NT office on (08) 8272 2966 or if you are not a NECA member, find out what benefits there are here or by contacting Jamie Phillips, Business Relationship Manager at NECA SA/NT.