This calculator accounts for all the hidden costs that can easily be overlooked and reveal how much do your staff really cost?
SwiftERM is a totally automatic email remarketing system, the only one in the world that is! If you’re serious about a like for like comparison between this any other email system begins by including your staff costs to the necessary turnover required for our competitor’s products to even begin to be viable as our equivalent is zero. That is a massive saving, even before you take into account absenteeism, errors and omissions and even malicious intent, none of which concern our users. Below is an example based on a single person on £25k per annum, taxes and rates may vary between countries, it also illustrates what we have omitted to be seen to be fair and open.
| Working Hours / Hourly Rate | ||
| Hours worked per week | 37.50 | |
| Equivalent hourly rate | £12.82 | |
| Annual Costs | Cost £ | 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 |
| TOTAL EMPLOYEE COSTS | £ | 32,530 |
| Actual productive working days | Days | Running total |
| Weekdays in a year | 261 | 261 |
| Deduct: | ||
| Holidays (2010 minimum is 28 days) | 28 | 233 |
| Formal training | 5 | 228 |
| Sick days | 7 | 235
|
| Wasted/unproductive time (allow 10 mins per working hour) | 38 | 273 |
| 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: | 1.85 | times salary |
| NI Rates 2012 – 2013 | ||
| Employer’s NI threshold (£ per week) | 144.00 | |
| Class 1 NICs: | 13.80% |
I work for myself, I pay myself 4 times your figure and used to spend a quarter of my time working on my email marketing, so the cost you suggest I guess is about right. However my company only earns a net profit of around 5%, so a cost of £46,146 required a turnover of £922,920 to breakeven, and that’s before the cost of the email systems I used to use. One of these I paid £12,000pa and the other £25,000pa for!
I now get 10% extra turnover from Swift, do nothing, and keep the profit s from what used to cost me so dearly. I’d suggest you’d be mad to use something else. This is a no brainer! Keep up the good work, SwiftERM is brilliant!