Personnel management solutions can help small businesses reduce employment costs
Personnel management solutions are likely to come in handy for small and medium businesses who are faced with huge costs, especially when taking on their first employees, as recent analysis released by the FSB (Federation of Small Businesses) and the Centre for Economics and Business Research (Cebr) was able to reveal.
The new research estimates that a typical small business pays out on average £189,600 towards staff costs, of which 15.1 per cent are non-wage costs. These include employer’s national insurance contributions, payroll processing and hiring a replacement staff member in the event of a worker being off sick.
Total employment costs are estimated to be highest in the health and education services sector (£280,900) and lowest in the accommodation and food services sector (£117,400).
Furthermore, businesses taking on their first employee face higher non wage costs relative to salaries compared with larger firms. On average, a business with one employee and one owner faces an average employment cost of £35,500 per worker.
Approximately 20 per cent of total employment costs come from national insurance contributions, as well as income tax on the owner’s salary. In addition, the cost of the business owner’s time in carrying out regular administrative tasks is estimated to be equivalent to 2.3 per cent of total costs, paid f out of the owner’s salary.
In contrast, a typical business in the 20-49 employee category faces an average cost of £25,100 per worker. As a business increases its headcount, a greater proportion of total employment costs are devoted towards the wages of employees, instead of overheads, meaning that firms may become more efficient with size.
Personnel management solutions can help companies cut their costs
Tensor can help managers get the best out of their employees with its Tensor Personnel system which supplements our WinTA Lite and WinTA Enterprise time and attendance systems.
The software offers everything you would expect from a personnel management system and has many additional features that will save time and aid strategic planning.
Screen layouts within the personnel management software can be added and modified to reflect the different tasks and procedures that your company carries out. We have more than a decade of experience in human resources.
If you’d like to find out more about the Tensor Personnel.NET suite, or the other advanced Time and Attendance and Access control solutions in Tensor’s portfolio, just get in touch with our dedicated product team and get an answer to all of your questions.