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Working Papers W42 Determinants of Labor Cost Adjustment Strategies during the Crisis Survey Evidence from Croatia Marina UNIVAC Zagreb, September 2015 WORKING PAPERS W42 PUBLISHER Croatian National
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01
Identify the different factors that contribute to labour costs, such as wages, benefits, taxes, and training expenses.
02
Determine the time period for which you want to calculate the labour cost, whether it's a day, week, month, or year.
03
Collect accurate data on the number of hours worked by each employee during the specified time period.
04
Determine the hourly wage rate for each employee and multiply it by the number of hours worked to calculate the base wage cost.
05
Consider other factors that may affect labour costs, such as overtime hours, shift differentials, and bonuses.
06
Calculate additional costs related to labour, such as payroll taxes and benefits (e.g., health insurance, retirement plans).
07
Assess any training or development expenses incurred for employees and include them in the labour cost calculation.
08
Add up all the individual costs calculated in the previous steps to determine the total labour cost for the given time period.
Who needs determinants of labour cost?
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Human Resources departments in companies often need to determine accurate labour costs for budgeting and financial planning purposes.
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Business owners or managers may need to analyze labour costs to evaluate the profitability of different projects, departments, or operations.
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Economic researchers and analysts may study labour costs to understand trends, labor market dynamics, and the overall economic health of a region or country.
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