Are you planning to hire a new team member for your practice? An accounts assistant would cost about £ 23000 these days varying from about £21k to £29k based on a city. You would be wrong if you consider this to be your total costs for a new hire. There are various other employment costs that you need to keep in mind too.
To get the right person you would either take help of some recruitment agency or do it yourselves on social media and job sites. The recruitment agencies normally charge around 20-30% of yearly pay, which would come around £ 5000. In case you use LinkedIn or other job sites such as monster it will cost you around £300 – £ 500, add your time costs for interviews etc.
Bonuses, NI Contribution & Pension
A bonus has become a norm these days and average payment as per govt estimates are around 5% of yearly pay. Employer NI contribution adds another 13.8% & pension adds 2%. Total costs around 20%.
Other Overhead costs
As if this was not enough there are various other hidden costs to be considered too.
Office space – The cost of providing a desk in your office. Calculate this from your rent.
Office Equipment – Computers, peripherals, phone line etc.
Training – Most of the new employees would require in-house training just to understand your way of working. This would normally come to 10-15 days of time.
Misc. – HR costs, Sick pay, Holiday cover, maternity leave etc.
Total Employee Costs
- Salary – £23000
- Hiring Costs – £5000
- Bonus, NI & Pension – £4600
- Other Overheads – £8000
The total amount that you would spend on a new hire in the first year would be £40600 as opposed to £23000 that you would pay. The total costs nearly double the “perceived costs” and small to mid-sized practices need to budget carefully while taking on a new member on their team. No doubt taking on new people is essential for the future growth of practice but creating unnecessary financial burdens also take its toll.
We at Sapphire provide ample opportunities to accounting practices to grow their practice by outsourcing their work to us. You can expand and grow without extra financial strain on the practice. Please contact us at email@example.com or call at 020 3002 6314 for further details.