The true costs of employment
Many people overlook the hidden costs associated with employing domestic-level staff. Additional to base salaries, other mandatory staffing expenditure typically includes Superannuation (Pension or 401K), Annual Leave, Sick Leave, Public Holidays, Workers Compensation Insurance, Payroll Tax and Recruitment Costs. Collectively, the annualised cost of an employee could reach as much as 1.4 times the amount of the base wage.
The heavy, ongoing, government imposed burdens that are placed on businesses are stripping not only the profits across western countries, but also severely impacting the investment into innovation which is required to fuel future business growth.
The true costs of opportunities lost
In order for businesses to remain viable in an ever-changing marketplace, innovation is required to be able to change, adapt, learn and re-learn existing practices. Many businesses have indeed failed due to not placing enough value on the requirements to produce new products, new technologies and new services to positively engage their customer base and retain their custom.
Without the financial resources available to commit to innovation, businesses are robbed of the opportunity to create new revenue streams and increase profit margins. They also run the risk of losing existing clients by operating a stagnant business within a continuously changing environment.