What are True Labor Costs™?
The True Labor Costs indicate what an employee actually costs the company - far in excess of the gross salary. In addition to wage and salary costs, employer contributions, social benefits, paid absences (e.g. vacation, illness) and other cost factors are also taken into account.
Why are True Labor Costs™ important?
In project-based companies such as agencies or consultancies, it is crucial to know the real costs per employee precisely. This is the only way to realistically calculate hourly rates and make them profitable. If only the gross salary is used in the project calculation, financial gaps quickly arise.
How does OS/ help with True Labor Costs?
OS/ calculates the True Labor Costs automatically and helps you to
- Set realistic hourly rates based on real costs.
- make non-billable times visible.
- make well-founded decisions on pricing and profitability.
Conclusion
The True Labor Costs show you what your employees really cost - OS/ ensures that you can easily and accurately integrate this data into your calculations. This ensures that your projects remain profitable and no hidden costs are overlooked.