Do you know how much adding a new employee costs a Construction company?  Let’s take a Project Manager (PM) for example.  So, your company has a new project scheduled to start and your existing staff is fully billed with existing projects, but there may be some room for shuffling the staff around to accommodate the new project starting.  Should I hire a new employee, in this case a PM, or make this work internally from existing employees?

I think we have the budget to hire a new PM for the new project…what is one more employee to the bottom line. 

Well here is where I come in.  You got it.  It’s a business decision for the Construction company.  Hiring a new employee can affect the bottom line dramatically, especially over time.  Here is why there is more to think about than just scheduling for the next project.  With the salary comes labor burden.  Remember those employer taxes FICA, FUTA, SUI.  And workers compensation and liability insurance.  Not to mention some of the more common fringe benefits such as health insurance, dental, vision, 401K match to name a few. 

Need help making this decision or calculating the cost of new employee, including labor burden?  Let’s chat.