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Increase Profits with Employee Cost & Pricing Analysis

How Much Does It Cost –
When You Don’t Know Your Labor Burden Costs?

You simply cannot afford to NOT KNOW your true cost of labor!

The Problem:

Click here to learn more about labor burden calculationsThe process of determining which costs to include for which employees, then gathering, organizing and calculating “fully-loaded” employee cost-per-hour data prevents many small to mid-market companies from ever computing this critical information!

Lacking this information, owners “look to the competition” or just “make an educated guess” about their employee costs, and what they should earn per hour for their employees’ work.  These companies struggle along, losing the profits they deserve, and can’t really see exactly what the problem is, or how to correct it. If this sounds uncomfortably familiar, you’re probably in need of “better numbers” to help with “better decisions”.

Do your current job cost reports include each employee’s true cost per production hour?  For example:

  • Direct compensation?
  • Payroll taxes?
  • Equipment and facilities usage?
  • Insurance and other benefits?
  • Paid time off earned while working?
Frequently asked questions about labor burden rates:

Knowing the current, fully-burdened cost per hour for each of your employees and by department is critical for accurate job-costing measurements and cost estimates.

The Solution: Better Numbers = Better Decisions = Better Profitability

Never fear… You can do it! You just need a little help…

Our president, Diane Gilson, has helped many of our clients master this aspect of their management accounting system. She is now sharing her knowledge, through a series of articles and reports designed to assist you in calculating your true employee costs and labor burden rates.

Labor Burden & Profits – Part I:
What Do Your Employees Really Cost?

Whether you’re a contractor, supplier, remodeler, builder, service provider, consultant, or other business professional, if you have employees, you owe it to yourself to understand exactly what each person on your payroll really costs and how he or she can make an appropriate contribution to your bottom line.
Click to the left to see a video, or click here to view the special PDF report 

Labor Burden & Profits – Part II:
Exactly What Should Your Employees Contribute to the Bottom Line?
What do your employees really cost per production hour and how much should you charge for employee labor? Are each of your employees making a positive difference in your bottom line? Whether you have 1, 40, or 80 employees, it pays to know your labor burden numbers inside and out, so that you can use that data to increase your bottom line. Here are some ideas about how to use that critical information to make a positive impact in your take-home pay!
Click here to view the special PDF report

Labor Burden & Profits – Part III:
To Overtime or Not to Overtime? That is the Calculation…
Is it ever a smart move to utilize overtime, and if so, when? And for which workers? Here are more creative ways to use fully-burdened labor cost information to make a positive impact in your take-home pay.
Click here to view the special PDF report

Labor Burden & Profits – Part IV:
Using Burdened Costs & Variance Reports to Improve Your Operations
Using burdened cost information in tandem with internal management reports can help you bring job costs under immediate control and will provide you with insights into ways to improve your company’s overall performance and productivity.
Click Here to View the Special PDF Report

Labor Burden & Profits – Part V:
Where Does Our Time Go? Assigning Direct & Indirect Time to Jobs (Introduction)
Which kinds of employees should be assigned to job costs? And which to company overhead? Opinions vary, but here are some guidelines and techniques to help you sort out the numbers and apply them to job costs so that you can get a better handle on your financial results.
Click Here to View the Special PDF Report

Labor Burden & Profits – Part VI:
Where Does Our Time Go?  Assigning Direct & Indirect Time to Jobs
Assigning sales time and costs, owner’s time spent on job-production activities, and time for employees who are asked to perform a variety of direct, indirect, or admin activities present special job-costing and measurement challenges. Here are some ideas and insights to help you logically assign these unique “time” circumstances to job costs – so that you can see job cost reports that truly reflect time spent on jobs.
Click Here to View the Special PDF Report

Labor Burden & Profits – Part VII:
The Cost of Lost and Wasted Time – “Where Did Our Profits Go?” (Introduction)
Did someone forget to bring the right tool to the job site? Were the wrong parts ordered, or not ordered at all? Was the crew 15 minutes late getting back from lunch? Does it seem like Pat is receiving or making frequent personal calls? If any of these scenarios sound familiar, you may want to understand and share this information with your employees.
Click Here to View the Special PDF Report

Labor Burden & Profits – Part VIII:
The Cost of Lost and Wasted Time -“Where Did Our Profits Go”? (Conclusion)
Did one of your workers make the wrong assumption about the next task to be completed? Do you find that you have to perform frequent warranty work, or re-do’s? Do employees spend too much time airing complaints? If you’re frustrated by the loss of employee time, consider how much that loss of time costs. Sharing your viewpoints about lost and wasted time with employees may be the beginning of a more profitable future.
Click Here to View the Special PDF Report

Beast of Burden

From Remodeling Magazine – July 2006
How the Qlean$tart Employee Cost & Pricing Analyzer can be used by owners and bookkeepers in the remodeling industry to gain a better understanding of their employee costs and the impact of those numbers on their bottom line.Click Here to View the Article

Need more help?
Consider our easy-to-use and easy-to-update software solutions!

Info Plus(+) Accounting, Inc. has also developed the eCPA – the Employee Cost & Pricing Analyzer (enhanced version of the product previously released as Qlean$tart Labor Burden Calculator).  This package is a software assistant that uses Excel-based formats to leads you through the information gathering process and automatically calculates employee costs for up to 200 employees and 25 departments. And if you’re a QuickBooks user, you’ll love the Special Bonus Report that shows you how to get QuickBooks to automatically post fully-burdened labor costs to individual jobs for more accurate job cost reports!

Online demo of the Employee Cost & Pricing Analyzer

For a full description or to purchase the Employee Cost & Pricing Analyzer, click here.

Still need help? Call us!

If you’d like some additional, behind-the-scenes mentoring, Diane Gilson can also help you customize an employee cost and pricing system designed to fit your company’s specific needs. Please contact us toll-free at 866-244-2228 or email us at Help@InfoPlusAcct.com to arrange an appointment.