Do you know your hourly rate?

Do you know your hourly rate?

With the dissolution of office blocks for home working, financial accountants are having to revise and work out methods of apportioning overheads.  Self-employed home workers have long had to understand what overheads can be claimed or not and to then determine how much to charge.  Now corporations are having to play catch-up.

Once the accountants have finalised their new hourly rates, how many will let their co-employees know what the figures show that are being applied to them?  Probably very few – and that’s a shame.

All employees ought to have some idea of what it costs to employ them – i.e. their hourly rate – and roughly how this figure is arrived at.  Solicitors, garages and other service organisations charge by the hour and in many cases this figure is pre-advised to new clients.  So why do so many companies not let their staff have this information?

Both working in an office or at home, if people know that every hour worked has to earn say, £50, then the work ethic would improve and have some real meaning.  If an individual is contracted to work seven and a half hours a day, then they will realise that they have to deliver effort to the value of £375.  With flexible working arrangements it is even more important to ensure that somehow this is achieved.

So, tell people their hourly rate – let them work out, for example, the cost of the daily Zoon meeting.  Hourly rate x number of participants.  Is the individual giving and the employer receiving value for money?  Are the staff contributing?  Is the employer earning its corn?     Discuss.

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