Labor costs

Detailedinformation

Introduction

Thelaborcostofanenterpriseisoftenregardedastheexpenditureofwagesorwagesandbenefits,butitisnot.

Firstofall,laborcostsarenotequaltowages.Laborcostreferstothesumofalldirectexpensesandindirectexpensespaidbyanenterprisefortheuseoflaborinproduction,operationandprovisionoflaboractivitieswithinacertainperiodoftime.Ifthecompanypaysemployees1,000yuaninwages,thenthelaborcostwillneverbethedirect1,000yuan,andthereareotherindirectcosts.

Secondly,laborcostsarenotequaltototalwages.Somepeoplesaythatsincewagesarenotequaltolaborcosts,isittruethattotalwagesareequaltolaborcosts?ofcoursenot.Accordingtothe1997documentNo.261oftheMinistryofLabor,laborcostsincludetotalwages,socialinsuranceexpenses,welfareexpenses,educationexpenses,housingexpenses,andotherlaborcosts.

Again,laborcostisnotequaltousecost.Fromtheperspectiveoftheclassificationofhumanresources,humancostcanbedividedintoacquisitioncost,usecost,developmentcost,andturnovercost.Itcanbeseenthat"usecost"isonlyapartoflaborcost.Somepeopleoftenregardlaborcostcontrolasa"zero-sumgame"betweenlaborandmanagement,butitisnot.Laborcostcontrolcanbeexpressedbythefollowingthreeinequalities:

Managinglaborcostdoesnotmeanreducinglaborcost

Managinglaborcostdoesnotmeanreducingemployeeincome

Higherdoesnotmeanthatthelaborcostishigh

Thecontroloflaborcost

Insimpleterms,thecontroloflaborcostisnottoreducetheabsolutevalueoflaborcost,becausetheabsolutevaluewillinevitablyfollowthesociety.Progressisgraduallyincreasing.Therefore,thecontroloflaborcostsistoreducetheproportionoflaborcostsintheoverallcost,andenhancethecompetitivenessofproductsorservices;thecontroloflaborcostsshouldreducetheproportionoflaborcostsinsalesrevenue,andenhancetheabilitytopayforstaffcosts;Themanagementandcontroloflaborcostsistoreducetheproportionoflaborcostsintheaddedvalueoftheenterprise,thatis,toreducethelabordistributionrateandenhancethedevelopmentabilityofhumanresources.

Wagedeductiondoesnotwork

Thereasonwhycompaniesusedeductionofemployeewagesasacost-reducingpurposewillbetheopposite,whichwillcauseunpredictableeconomiclossesandnegativeeffectstothecompanyGreatinfluence.Forexample,afteranemployee’ssalaryisdeductedforvariousreasons,theemployeefirstdoesnotacceptsuchfactsinhisheart,whichleadstoemotionalproduction.Whenemotionsarestimulatedtoacertainlevel,theywillvent,andthentheventwillbetargetedPoorserviceattitude,destructionofenterprisefacilitiesorequipment,reductionofproductproductionefficiencyandproductqualificationrate,etc.Asaresult,thevalues​​ofemployeesandthecompanyarenotconsistent,thecorecultureofthecompanyisnegativelyimpacted,andthespiritoftheenterprisecannotbestronglysupported.Itcanbeseenthatcostcontrolisnotaboutemployees'wagesandbenefits,buthowtobetterachieveeffectivemanagementandcontrolinhumancapitalmanagement,andachievehumanresourcedevelopmentandeffectiveincentivesinhumanresourcemanagement.

Laborcostsurvey

Toreducecosts,thetoymanufacturingindustryrelocatesfactoriestootherplaces

Howmuchpressureiscausedbyrisinglaborcosts?TheanswergivenbyQingdaoHeyiToysCo.,Ltd.is,"WeareforcedtomovethefactorytoZaozhuang,wherelaborpricesarerelativelycheap,sothattheycansavemorethan200,000yuanamonth."

ManagerZhangQiangtoldreportersthatthereareatotalof200front-lineoperatorsintheirfactory.InJiaozhou,eachworker'sdailysalaryis80yuan,andinChengyang,eachworker'sdailysalaryis100yuan.IfthefactoryisbuiltinJiaozhou,theyneedtopay16,000yuanperdayforfront-lineworkers,andifitisbuiltinChengyang,theyneedtopay20,000yuan.

Toymanufacturingisanout-and-outlabor-intensiveindustry,thatistosay,ifthereisnolabor,everythingisimpossibletotalkabout.Buttheycannotlayoffstaffatwill,becausealmostallproductiondependsonlabor,andlayoffsmeanreducingproduction.ZhangQiangsaidthatitisalsotruethatlaborcostsaccountformorethan60%ofalltheircosts.

Inordernottoreducetheprofitmargin,thecompanychoseto"escape".TheyspenttensofthousandsofyuantomovethefactorytoZaozhuang.

"AftermovingtoZaozhuang,itisobviouslybetter.Thedailywageoffront-lineworkersis60yuan,soweonlyneedtopay12,000yuanaday.Howmuchmoneycanbesavedeveryyear,noneedtosay."ZhangQiangsaid,Infact,theydon’twanttomovethefactorytoZaozhuang.Afterall,itincreasestransportationcosts.“Thereisnoway.Qingdao’slaborpriceistoohigh.Theproblemissolvedeasily.”Asforthereason,ZhangQianganalyzedthatthisisbecausetherearemorefactoriesinQingdao,andtheyneedyoungormiddle-agedwomen,whichgivesthemaverynarrowchoice.“InZaozhuang,it’sdifferent.Annualfemalelaborforceisabundant

Laborcostanalysis

Employeeturnoverrateistheproportionofresignedemployeestothetotalnumberofemployees.

Therearetwomainformulasforcalculatingemployeeturnoverrate.Type:

Formula1Numberofemployeeslost/averagenumberofemployeesduringtheyear(averagenumberofemployeesduringtheyear=numberofemployeesatthebeginningoftheyear+numberofemployeesattheendoftheyear/2)

NumberofemployeesinJanuary+numberofemployeesinFebruary+……+NumberofemployeesinDecember/12

Formula1isarelativelyeasytooperateandcommonlyusedcalculationformula,thenumberoflostpeopleisthenumberoflostpeopleinanassessmentcycleIntotal,theaveragenumberofpeopleinthedenominatoristheaverageofthetwotime-pointindicators,whichonlyrepresentsthebeginningandtheendoftheyear.Usingthisformulatocalculatetheattritionrate,theresultiseasytobedistorted,andformula2canavoidthisproblem.

Personnelrecruitmentcosts

1.Recruitmentcosts

Recruitmentcostsmainlyincludethedirectlaborcostsanddirectbusinesscostsofrecruitingpersonnel,suchasrecruitmentnegotiationconferencefees,travelexpenses,agencyfees,Advertisingexpenses,promotionalmaterialexpenses,officeexpenses,waterandelectricityexpenses,etc.Therearealsoindirectexpenses,includingadministrativeexpenses,temporaryvenuesandequipmentusagefees.Thecalculationformulaisasfollows:

Recruitmentcost=directlaborcost+Directbusinessfee+indirectmanagementfee+prepaidfee

2.Selectioncost

Theselectioncostincludeseverythingthathappensinvariouslinkssuchaspreliminaryexamination,interview,psychologicaltest,comment,physicalexamination,etc.Decidewhethertohireornottohiretherelatedexpenses.Thecalculationformulaisasfollows:

Thetimecostoftheselectioninterview=(preparationtimeforeachinterview+timerequiredforeachinterview)×salaryrateoftheselectedcandidate×candidateNumberofpersons

Summaryapplicationdatafee=(datafeeforprintinganddistributingeachapplicationform+datasummaryfeeperperson)×numberofcandidates

Examinationfee=(averagematerialfeeperperson+averagePerperson’sscoringcost)×numberofpeopletakingtheexam×numberofexams

Testreviewcost=timerequiredforthetest×(thesalaryrateofthepersonnelofthepersonneldepartment+thesalaryrateoftherepresentativesofeachdepartment)×thenumberoftimes

(Ourcompany)medicalexaminationfee=[(timerequiredforexamination×inspector’ssalaryrate)+equipmentandpharmacyrequiredforexamination]×numberofpeopletobeinspected

3.RecruitmentThis

recruitmentcostincludesadmissionfees,transfercompensationfees,relocationfees,travelsubsidiesandotherrelatedexpensescausedbytheemployment.Thesecostsaregenerallydirectcosts.Thecalculationformulaisasfollows:

Employmentcost=employmentfee+transfercompensationfee+relocationfee+travelsubsidy

4.Resettlementcost

TheresettlementcostisTheenterprisearrangesvariousadministrativeexpensesfortherecruitedemployeesindeterminingthejobposition;thehiringdepartmentisthetimecostoftheplacementpersonnel;thehiringdepartmentarrangesthelaborfeesandconsultingfeesforthepersonnel.

Settlementcost=variousresettlementadministrativecosts+necessaryequipmentcosts+resettlementpersonneltimelosscost

trainingandlearningcosts

①pre-jobeducationcosts

Thecostofpre-employmenteducationincludesthesalaryoftheeducatedandtheeducated,thelaborlosscostoftheeducatedandtheeducatedleaving,theeducationmanagementfee,thecostofmaterialsandthedepreciationofeducationalequipment,etc.Thecalculationformulaisasfollows:

Pre-jobeducationcost=(averagesalaryrateofinstructors×productivityreductionratecausedbytraining+salaryrateofnewemployees×numberofemployees)×numberoftrainingdays+educationmanagementfee+informationExpenses+depreciationexpensesofeducationalequipment

②On-the-jobtrainingcosts

On-the-jobtrainingcostsaretheexpensesincurredbythecompanyfortrainingemployeestomeetthejobrequirements,includinginductiontrainingcostsandJobretrainingcosts.Theinductiontrainingismainlycompletedintheformofoldandnew.Thecalculationformulaisasfollows:

Directcostofjobtraining=∑Guidancegrouphourlywage×guidancehourI×monthlyguidancetimesI+∑(instructedperson’shourlywageK×guidancehoursK×monthlyguidancetimesK)

Indirectcostofon-the-jobtraining=lossoftraineesleavingthejob+losscausedbyunskilledtrainees+trainingmaterialfees+variousmanagementfees

CostcalculationandjobretrainingThetrainingcostcalculationissimilar,exceptthatthecostofretrainingissmallerthanthecostofon-the-jobtraining,andthetimemaybeshorter.Thecalculationformulais:

Indirectcostofjobretraining=trainingandretraininglaborcost+materialcost+managementcost+losscostcausedbyvarioustraining

severancecost

①Thecostofresignationcompensation

Thecostofresignationcompensationreferstothecostthatthecompanyshouldcompensatetotheemployeewhenthecompanydismissesanemployee,ortheemployeevoluntarilyresigns,includingthesalarypayabletotheemployeeuntilthetimeofdeparture,one-timeExpensessuchasseverancepaymentpaidtoemployeesandnecessaryrelocationexpensesforemployees.

②Resignationmanagementexpenses

Resignationmanagementexpensesaremanagementexpensesincurredbyenterprisemanagementpersonnelinhandlingmattersrelatedtoresignationpersonnel.

Interviewtimecost=(preparationtimebeforeinterviewwitheachperson+timerequiredforinterviewwitheachperson)×interviewer'ssalaryrate×numberofemployeesleavingthecompany

TimeofleavingemployeesExpenses=timerequiredforinterviewsperperson×weightedaveragewagerateofresignedemployees×numberofemployeesresignedfromthecompanyWagerate×averagewagerateofemployeesinrelateddepartments×numberofresignations

Pre-resignationefficiencyloss=normalaverageperformance-averageperformanceduringtheperiodbeforeresignation

③Emptyjobcost

Vacancycostreferstothelossofajobvacancyafteranemployeeleaves.Becauseajobvacancymayadverselyaffectthecompletionofacertainjobortask,itwillcauselossestothecompany.

Risinglaborcosts

ItisunderstoodthattheMunicipalBureauofStatisticshasconducteddataanalysisonstatisticalsurveyannualreportsof379keytransportation,warehousingandpostalcompanies,whichaccountforthecity’stransportationandlogisticsindustryoperatingincomeThetotalamountismorethan80%."Thecompanyachievedoperatingincomeof87.82billionyuanfortheyear,anincreaseof23.5%year-on-year.However,theprofitmarginwasverylimited.Theoperatingprofitfortheyearwas4.929billionyuan,ayear-on-yeardecreaseof22.3%.Amongthe379companies,115sufferedlosses,withaprofitof100,000.Thereare65enterprisesbelowRMBYuan,andtheproportionofloss-makingandmeagerprofitenterprisesreaches47.5%."TherelevantpersoninchargeoftheMunicipalBureauofStatisticssaidthatfromthedatamonitoredthisyear,thelevelofcorporateprofitabilityisstillnothigh.

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