How much do full-time staff really cost?
Being in the business of managing staff costs, we often hear people say that casual staff just cost so much more than their full time equivalents. I mean, that extra 25% is a killer, right? Especially for staff who work a fairly consistent schedule each week, it’s almost like free money.
For a while there I went along with that, not really giving it much thought. But today the thought struck me – casuals miss out on plenty of benefits afforded to full and part timers, so are they really better off? I decided to investigate further. What follows may surprise you.
First – how many days in a year does a full time employee work?
- Weeks in a Year: 52
- Working Days in a Year: 260
So far so good. We’re going to ignore the 1 or 2 days that we’re off by, for the sake of a nice round number. Next, let’s look at this full time employee’s entitlements, in days.
- Annual Leave: 20 (4 weeks)
- Personal Leave: 10 (2 weeks)
- Public Holidays: 10
We’ll assume a 7.6 hour work day and 17.5% leave loading. So how many hours of leave are we paying?
- Annual Leave – Base: 152
- Annual Leave – Loading: 26.6
- Personal Leave: 76
- Public Holidays: 76
- Total Hours of Leave Paid: 330.6
Earlier we calculated how many days of work one can work in a year, now let’s subtract leave taken to get a more accurate figure.
- Days of Leave Taken: 40
- Actual Days Worked in a Year: 220
- Actual Hours Worked in a Year: 1672
Divide 330.6 (hours of leave paid) by 1672 (hours worked) and we get 19.77%. Remember, we are comparing this to the 25% loading paid for casual staff. So from this perspective, yes, your full time and part time staff are still cheaper – but only by 5.23%.
And even that number is probably on the low side. We ignored long service leave and maternity leave because they are a bit more unreliable. Both they are also costs (or accruals) that can definitely add up!
When you take into account the fact that you only have to pay casuals when you need them, it’s easy to see why more and more Australian employers are turning to casual staff. According to the ABS, this has been growing steadily since the 90’s, and today over 1 in 5 jobs in Australia are casual.
Product Updates |
Text Me Maybe: Share Your Rosters by SMS!
Tanda’s (PayAus) roster management tools just got even more powerful, with the ability to send your staff their rosters by SMS, instantly. No more printing rosters out and making sure they don’t get lost, or trampled on, or wet. No more casuals calling up during the busiest time of the day to ask when their next shift is. And no more typing text messages up yourself – Tanda can do it all for you. Once you’ve designed a roster in Tanda, just follow the prompts to SMS it to your staff. You’ll be able to select which staff members get their rosters delivered, and even see a preview of the message they’ll get. Rosters by SMS cost 25 cents per message, but as a gift to Tanda customers, we’re making the first month absolutely free. Have fun! P.S. rosters are sent to the phone number you’ve provided for your staff, so you’ll need to make sure that’s correct. If you are having issues entering phone numbers, or need help importing a lot of phone numbers, please contact us!
Product Updates |
New from Tanda: Roster Taggings
Ever wanted to add a location to a shift in a Tanda roster? Maybe you want to tag shifts for newbies, experienced staff, and managers. We’re super pleased to have rolled out our new tagging system. Using tags, you’re able to set up a set of colour codings that correspond to tags which you can apply to your rosters. You can use these tags for anything you like, and setting a name for them is easy. For example, call them “Location” and your staff will know exactly which office they’re working at when their roster is sent to them. Get all the details on roster taggings by reading our user guide. Roster tags are now live for all Tanda customers.
Product Updates |
New Feature! Leave Tracking Module
Our long awaited leave tracking module is now live. Check out the user guide to learn how Tanda (PayAus) can help you track those times when your staff don’t work.