How much do your staff really cost? SwiftERM Retail Development


How much do your staff really cost? Staff are commonly the most expensive element on your Balance Sheet after purchases. Regardless of whether you’re a high-street name, or booming online ecommerce retailer, calculating your exact ROI is essential, and omitting the less obvious overheads of employing staff, which are nevertheless always there, can have dire consequences.

If your peers are taking a leap ahead by advocating the early adoption of new technologies, and you’re still believing in a formula which has fundamental flaws, don’t be surprised when you see them taking customers away from you and taking a lead. Of course with the perpetual development of marketing automation, they could not only overtake you, but don’t be surprised to find yourself lapped too.

Below is an example based on a single person on £25k per annum. typically this is just a junior marketing person. The taxes and rates may vary between countries, it also illustrates what you may have omitted, included to be seen to be fair and open. If you want a more accurate calculation based on your own staff, there are many places online for your assistance.


Working Hours / Hourly Rate
Hours worked per week37.50
Equivalent hourly rate£12.82
Annual CostsCost £Running Total £
Wages / Salary & NIC’s
Annual Wages / Salary including overtime / bonuses        25,000                    25,000
Class 1 NICs          3,430                    28,430
Optional benefits £ £
Company car                  –                    28,430
Gym                  –                    28,430
Health care                  –                    28,430
Life assurance                  –                    28,430
Pension                  –                    28,430
Bonus                  –                    28,430
Subtotal for NICs calculation                  –
Class 1A NICs (P11D)                  –                    28,430
Employee specific costs £ £
Software licences          1,500                    29,930
Training             500                    30,430
Computer & IT support             500                    30,930
Apportionment of business costs £ £
Share of general overheads (rent, rates, building maintenance,
water, heat & light, telephone, insurance, etc)
             500                    31,430
Consumables (stationery, toner, tea/coffee, toilet paper, etc)             100                    31,530
Administrative overheads (HR, payroll, secretarial, appraisals, etc)          1,000                    32,530
Other financial costs and potential liabilities £ £
Maternity/paternity leave                  –                    32,530
Unfair dismissal claims                  –                    32,530
Redundancy                  –                    32,530
Jury service                  –                    32,530
Sick leave holiday pay                  –                    32,530
Actual productive working daysDaysRunning total
Weekdays in a year261261
Holidays (minimum is 28 days)28233
Formal training5228
Sick days7



Wasted/unproductive time (allow 10 mins per working hour)38273
The true cost of employee £ £
Actual cost per hour£23.66
Actual Cost per day (total costs/working days)£177.49
Actual cost per year£46,146.61
Multiple of salary paid:1.85times salary
NI Rates
Employer’s NI threshold   (£ per week)        144.00
Class 1 NICs:13.80%


We hope you enjoyed this article, intended to help improve our client’s profitability. It reflects the care SwiftERM offer. If you haven’t already done so, then please enjoy a FREE month’s trial and let us know what you think. Register, call us on 0207 998 3901, book a call with us or Zoom ID 964 515 7464 


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