Our mandate is to consistently deliver accurate, cost-effective, and best in class labour supply solutions to our Industrial, Construction, Oil and Gas clients across Western Canada. Supporting our client’s labour strategy by deploying over 4 million man-hours over the last 15 years across the country.
What is the true cost of your workforce?
Let's break down how much one employee could cost you using an industry example with standard costs associated with each hire, starting with their base salary:
The most important component of your labour cost can vary greatly depending on your industry, geographic location, and market conditions.
If you are an employer that offers medical/dental benefits, you should take this into account when calculating the overall workforce cost.
Payroll / Benefits Admin
Depending on the size of your organization, processing your payroll and administering the group benefits program can add up to 2.5% of the base pay to overall costs.
Future Severance Payment
Based on industry data and labour law minimums, Statutory severance costs an average of 10% of the individual's income.
The cost of Workers Compensation in the construction industry can spike to over 7% during the busy season.
Employment Insurance (EI)
Employers shouldn’t forget to take Employment Insurance premiums into account. They are applied each pay period, and typically work out to 2.5% of the employee's base pay.
Canada Pension Plan (CPP)
Canadian Pension Plan contributions are a Federal deduction that equates to approximately 5% of the employee's’ base salary.
Finding The Right Person
Industry statistics show that finding and onboarding each candidate in the construction industry can cost up to 10% of that individual’s pay.
Replacing the Wrong Person
Although less expensive than the initial hire, replacing a non-performing employee still carries the cost of 5% of the rate of pay.
In the construction industry, vacation pay is often paid on each payroll as 6% of gross pay.
Similar to vacation pay, statutory pay is typically 3.6% and paid on each payroll.
True Cost of Workforce
The true cost of your workforce can equate to more than 50% of what you think you are paying for each hire. With this in mind, it’s clear that employers need to find the right workers for the job the first time.Matrix Labour Leasing can successfully attract and employ the best available talent for your business. If you need a company that offers fast turnaround, reliable, responsive service and robust, cutting-edge services, contact us at 1-866-666-9520.