Director for Strategic Development, BDO Unicon Outsourcing
Personnel motivation
Benefits. If your company provides benefits to its employees, do not forget to count the associated fees into your estimation of costs per employee. Furthermore, do not forget compensations (such as meal or gym) and private health insurance (which is currently offered by all decent companies).
Training. This is a mandatory cost item. For instance, accountants should have good skills in using their professional software and be aware of any changes in the legislation as well tax requirements and methods. Therefore, you will have to calculate how much you will spend on their training, e.g. conferences.
Personnel assessment. Furthermore, you need to estimate how much you will spend on development and implementation of employee assessment and motivation programs.
Workplace maintenance
Rent. One employee uses 4.5-6 sq.m on the average. With that in mind, you may calculate the rent share per employee in the office. Add furniture and equipment amortization to that amount — the service life of one fully equipped workplace amounts to approximately five to seven years.
Workplace equipment. This includes e.g. telephone and Internet, stationary, and subscription to professional media.
Support of remote employees. If you have remote employees, you won’t have to pay rent for premises and furniture. However, you will have to provide them with everything they need to do their job. Thus, you need to calculate the costs of mobile communication, Internet, and equipment.
Information technology
This item comprises the below costs:
software licenses (Microsoft, 1C, Adobe Photoshop, etc.);
- corporate application support (email, directory services);
- corporate IT software support (ERP, CRM, HR, accounting);
- computing infrastructure support (servers, data storages, net);
- additional application support (process control, banking, warehouse and logistics systems).
It is important to underline that robotization and introduction of new IT systems always involves a risk, financial, labor and time resources. For instance, a company may spend its time and money for switching to a platform, which finally may prove itself useless.
Potential risks
Mistakes are a common thing. However, companies often underestimate their expenses arising from potential risks:
- tax penalties;
- compensations payable upon a judicial award (e.g. for disclosure of a client’s trade secret);
- losses arising from data leakages or safety-related violations;
- downtimes due to power or Internet shut-offs.
- approximately four hours per week — for feedback processing and manual search for candidates;
- four hours per week — for interviews (personal, by phone and Internet);
- two hours per week — for addressing organizational issues (giving feedback to the manager, requesting access cards for candidates, correspondence, and arranging meetings and tests).
Sample calculation
If your employee earns RUR 70 000 ₽ per month, you have to calculate the following in addition thereto:
Direct costs: taxes and contributions into social foundations (24 000 ₽) + various bonuses, extra pays (RUR 6 000 ₽) + regular leave allowance, sick leave allowance, absenteeism (RUR 6 000 ₽) + private health insurance (RUR 5 000 ₽) + training (RUR 2 000 ₽) + office lease (RUR 10 000 ₽) + amortization (RUR 8 000 ₽) = RUR 131 500 ₽
Indirect costs (IT, office housekeeping, probable risks). According to our estimate, indirect costs per employee amount to 40% of the direct costs on the average: 131 500 ₽ * 0.4 = RUR 52 600 ₽ per month.
Hence, you spend RUR 184 100 ₽ per employee.
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