The Cost of Employees

You're going to pay each new employee you hire at least the minimum wage required by law, and probably a little or a lot more than that. But there are several other costs associated with each employee. Some you can quantify and control, others you can't.

In addition to compensation, there are four types of expenses relating to employees. Two of these are, to some extent, within your control. These are:

The other two types of expenses are, unfortunately, not readily predictable. They are:

There isn't a lot you can do to protect yourself from these types of expenses, except to hire the best people you can and treat them in a nondiscriminatory factor. Nevertheless, it's an issue to think about.