Return on Investment

If you pay employees £20,000 a year the total cost of employment can be 2 or 3 times that.

Costs such as:-

Property rent, repairs and maintenance, heating and cooling, purchase and maintenance, business rates and, utilities including electricity, telephone, gas and water rates. Desks, carpets, blinds, coffee machines, water coolers. Business systems software purchase, maintenance, improvements, monitors, printers, paper, ink, broadband and cabling. Files, and an unbelievably wide range of stationary items you didn’t know existed, but your staff think it essential that we must have. Storage cupboards, meeting rooms, reception desks and a potted plant. Public and Employers liability insurance, business interruption insurance, car insurance, van insurance, contents and building insurance. Staff recruitment, induction, training, development; leadership and management of staff, record keeping and meetings; loads and loads of meetings, Long term sick, apprentices and trainees, maternity and paternity leave. National Insurance and pensions; company car and van administration, repairs, maintenance, tax, and accidents.

Company secretariat and statutory returns, VAT, corporation tax, financial and management accounts, bought ledger, sales ledger, credit control, payroll. Quality control, compliance and complaints; professional fees associated with the buying and selling of anything, or anyone who wants you to give them money for no good reason. Product development, advertising, marketing and selling of what ever you do or make. Costs of financing of stock, people who will not pay you on time, jobs that have been in work in progress for so long there is no one here who started the job; and our losses whilst we work out how to make a profit.

Let’s say if we doubled the salary we might be getting close to the total cost to employ someone who is actually physically doing the work that clients pay us money for. For some organisations it is significantly more than that.

Question

So if you employ people who cost £40,000 per annum; and use the one2onetracker Everyday version, that cost £15 per annum, how long will it take for you to get your £15 per annum back?

Answer

Minutes, Hours, not even Days; what gets measured; gets managed. Not many people will come to a second consecutive one2one review with the promise still not kept. The simple act of people doing what they said they were going to do increases productivity at a stroke.