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Checking the cost of an employee

A new employee might take your business to a whole new level. But before you commit, take a moment to think about the less obvious costs involved in taking on a new employee. 

Before hiring someone, think about:

  • recruitment costs
  • salary or hourly wages
  • pay bonuses and rises
  • equipment, tools and office space
  • training and development costs
  • ACC levies, KiwiSaver contributions and Fringe Benefit Tax.

The Employee Cost Calculator will help you gain the confidence you need to take that important next business step and provide a ballpark figure of what hiring will actually cost.

After using the tool, balance the expected cost against what value you think a new employee will bring.

After using the tool, balance the expected cost against what value you think a new employee will bring.

They are likely to be worth the extra money if their skills will help you expand your business into new markets or get you more work. If not, don’t worry. Re-evaluate your business model to find out where you can boost profits and reduce costs.

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