[silverclean]

Hi.

Just wondering what you guys budget for staff costs. I have a figure in my head based on a gross rate of £6/hr. How much would you budget for? My company is not yet VAT registered, so at least we do not have to factor this into our costs.

Just trying to finalise business plan and want to make sure my numbers tally! It's the first time I've employed staff, and I don't have a business partner so I am on a very steep learning curve!

Any advice would be greatly appreciated!
SC

[Andy Foster]

Don't forget any extra insurance, training etc you are going to need.
Do they use their own vehicle, if so do you pay them mileage?
If a company van, then what does this cost you?
Materials they use (they may not be as careful as you are with how much they use etc).

Just a few considerations.

Andy

[pdl]

Employer National Insurance Contribution, currently just under 13% of gross wages

[Pristine Clean]

Hi Silver,

If you factor in just £6.00 ph then that is a very low basic wage. Our cleaners earn £7.50 - £10.00 ph.

Have you considered the type of staff you wll get if you pay a minimal wage? It amazes me that we as business owner want more and better staff but dont pay enough. They are people too and have mortgages and children.

£6.00 x 8 - £48.00 * 5 = £240 per week which is not alot by the time tax and NI get taken away from them and they have travel expences as well.

Ontop of the £7.50 we have to pay NI contributions. Some get paid milage. Some even a shift allowence and parking. It varies on the cotract.

Depening on how many staff you have it might be better to have an unlimited staff insurance starting from around £350 per year.

It would also be avisable to trai your staff in correct chemical dilution rates. Have a sheet on each site and monitor the usage. This way the cant over use or take any home. This includes bin liners, black bags etc.

You should also consider clothing , workwear, safety equipment the list goes on

Asfor VAT yalthough you pay it, your client pays vat not you

Dave

[Anna Warren]

Very interesting topic. I want to employ a staff and don't know where to start. Thanks for all replies!

[TonyD]

I'd also echo the concerns about paying a fair wage, it might be a lot more costly in other ways if a business chooses to pay minimum wage to employees. 

[Colin Stokes]

We pay £6 -£10 depending on expertise/site they work on/whether its one or multiple sites they work on.
At £6 we figure on £8.70 cost

I have to say we have had just as good or better experience with staff paid at £6 then those at £7.50. Though also that does correlate with European staff v English.

For the person that says they don't know where to start with employing staff my advice would be; go by your gut instinct with people - have a 6 week trial period written into your contracts and be prepared to be wrong about 50% of the time.