A £60,000 salary is a £129,545 revenue target
True Cost of a Hire
Employer National Insurance, the pension and the software land on top of every salary. Then the real number: the revenue that has to arrive to pay for it.
True Cost of a Hire
Not the salary. The run rate, the first year, and the revenue that has to arrive to pay for both.
What the salary hides
Employer National Insurance at 15 per cent above £5,000 and the 3 per cent minimum pension go on top of every salary before anything else does.
The first year also carries the recruitment cost and the kit, which is why year one is the expensive one even before the slow months while they learn the job.
The number that decides the hire is the last one: the revenue that has to arrive to cover them at your margin. A hire is a revenue target wearing a job title.
Take the workbook
The same build-up in Excel, with the monthly run rate and the revenue cover worked at your own margin.
Download the workbookFAQs
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