Hiring a new staff member costs more than just their salary. Here’s a breakdown of the costs you can expect when bringing someone new into your team.
If you’re running a small business, at some point you’re going to need to hire an assistant. And while you might think you’ve budgeted for this, with their salary covered in your figures, there are a number of additional costs you need to factor in when employing someone.
Obviously, this is the biggest cost. It very much depends on location, what sort of experience you’re looking for, what level you’re hiring at, and the contract specifics. Total Jobs put the average salary of an admin assistant at around £20,00.
Estimated cost: £20,000.
Every employer has to pay towards their full-time employees’ National Insurance (NI). The standard rate of an employer’s Class 1 NI is 13.8% of any total pay over £8,840. This includes any overtime.
Estimated cost: £2,230
All employees are automatically signed up to a basic company pension scheme, as part of the auto-enrolment scheme. This means employers have to pay a minimum of 3% of workers’ monthly salary towards a pension.
Estimated cost: £750
Training is a vital cost as it can help improve employee retention rates. The average UK company spends over £1,000 per employee.
Estimated cost: £1,000
Office space and equipment
You’ll need to provide a new employee with desk space, a computer and more. The IPD Blue Chip Office Index put the total property cost per occupant at £4,800.
Estimated cost: £4,800.
According to Indeed, a full time employee receives an average of 8 paid sick days and 25 paid days of annual leave. You also have to factor in the possibility of maternity or paternity leave.
Estimated cost of: £3,000
There are an array of other costs to consider such as the recruitment costs, HR costs, software licenses, and more.
Estimated cost: £220
So, for your £20,000 paid admin assistant, you’ll actually need to budget for something closer to £32,000 in their first year of employment.
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