Employer – are you wondering about the costs to hire employees?
/ Article
There are many things for an employer to consider when thinking about hiring a new employee. A new employee is an exciting addition to the work community, even for experienced employers. For those employers hiring their first employee, it signifies a change in their own role. How does an employer ensure that the right things are included in the job listing? Does the potential employee have precisely the skills needed for the job? Will the new employee’s personality fit in with the rest of the community?
The addition of a new employee brings fresh expertise and manpower to the community and supports the possibility for the business to grow. Hiring an employee is also significant in terms of the related costs.
In addition to the actual wages paid to the employee, the employer must budget for the mandatory employer’s fees, such as pension, social security and unemployment insurance contributions as well as accident and group life insurance contributions. Additional costs may also be accrued by the necessary work equipment, training and annual holidays. Before hiring anyone, it is a good idea to ensure that there will be enough work for them and to consider how much money that employee should bring in to the company.
Elo’s wage calculator helps you estimate the costs
The purpose of Elo’s wage calculator is to help employers’ to get an idea of the costs involved when hiring a new employee.
‘In our customer feedback, a wage calculation tool was one of the most frequently requested additional services’, says Tiina Tuomisto, Development Manager at Elo.
Employers simply enter the planned gross wages of the employee, the employee’s age and the share of the possible holiday bonus into the calculator. Based on the relevant percentages of the suggested wages, the calculator then states the amounts of the pension insurance contributions and other indirect labour costs that are mandatory for employers. At the same time, the employer will see the final wage amount that will be paid to the employee.
‘We introduced a YEL calculator for self-employed persons already earlier, but our customers have also expressed a desire for a wage calculator to estimate the costs of hiring employees. It is great that we are now able to help employers with many of the issues related to recruitment, including the costs’, Tuomisto adds.
If, for example, an employer needs to hire several employees at the same time for the summer or seasonal work, the wage calculator also enables the calculation of the overall costs related to the simultaneous hiring of multiple employees.
Try the wage calculator >
Things to consider when hiring the first employee >
Read about the pay subsidy >
Try the YEL calculator for self-employed persons >