Calculating Monthly Manpower Costs: What Factors Should We Consider?

How do we calculate the cost of manpower if we have to do this on a monthly basis? What are the factors to be included in this calculation? Is there any specific formula, format, or advice from those of you who are already working on the same?

Please advise.

Hi,

You can create a recruitment cost analysis/recruitment metrics that will provide you with the cost of manpower. The required fields will include:

a) Advertising Cost.
b) Consultant/Placement firm cost - if hired from them.
c) Referral bonus.
d) Recruiter cost.
e) Relocation expenses.
f) Telephone.
g) Portal expenses.

Regards,
Veena Jain

Hi, thanks for a quick response, Veena. However, I am handling the non-recruitment profile - employee life cycle. We are looking at carrying out manpower costing only with respect to active manpower every month. Does that imply that recruitment costs for the monthly active manpower would also be counted?

Dear Veena,

One simple method is the sum of gross salaries paid to your employees, which could be culled from the payroll. If you need to be precise, you may have to add the cost of benefits like P.F. and LTA. However, for MIS and a quick look at senior management, this data should suffice.

Regards,

Ravi B. S.