The true cost of employment

Hello everyone, new to the site and i am posting a few topics up that where i am looking for definitive answers.

This ones about the true cost of employing a HGV driver.
I understand that many of you may run your own business, so you should be able to help me a great deal but i would also like to here from people employing drivers for major Blue Chip Companies.

Lets say for arguments sake i own my own business and want to employ a HGV driver.
In my Area (South Yorkshire) HGV drivers are paid approximately £24,000 PA for a 48 hour week.
I know some of you will argue this figure is more or less but lets just stick to the £24,000 PA for example.

On £24,000 my drivers hourly rate will be £9.61 per hour over a 48 hour week, but this is not the true cost of employment because i have not taken into account holiday pay, sick pay, uniform, public liability insurance, National insurance ETC.

I would like to know the true cost of employment and get the true figures first hand from people who employ HGV drivers, on the above figures what would that driver really be costing my company to employ and how many more costs have to be paid by the employer to employ just one member of staff.

Thanks in advance for your time.

Rob

Come on employers, have your say!
Us bloody lorry drivers are costing you a fortune, so how much!

Lets make it easy and say we are working for £10 an hour straight across the board, how much on top of that £10 have you got to pay to have just one employee!

28 days hol employers ni

Alot of big companies now because of all the changes in employment laws and hard to get rid of drivers that are no good
its easier and more benficial for them to have agency workers

There seams to be more small companys now that will only have there drivers self employed
rather on the books

gettin-on:
28 days hol employers ni

Alot of big companies now because of all the changes in employment laws and hard to get rid of drivers that are no good
its easier and more benficial for them to have agency workers

There seams to be more small companys now that will only have there drivers self employed
rather on the books

Very true my friend which is why i started this post…
But how many more costs do employers have to pay for us bloody drivers…

OK so there are employers NI to pay
Sick Pay
Public Liability
Uniform
Holidays

…am i missing anything else?

So if i am not missing anything else and the hourly rate a company pays to drivers is £10-then how much is it really with the above costs added?

13.8% employer NI contribution.
+
20% to cover holidays, and sickness.
+
5% to cover thieving buggers.

i’d round it off to a nice 40% due to those that toss the job off.

THEN YOU HAVE ACCIDENT DAMAGE ETC
THAT NOT WORTH PUTTING THROUGH INSURANCE

gettin-on:
THEN YOU HAVE ACCIDENT DAMAGE ETC
THAT NOT WORTH PUTTING THROUGH INSURANCE

You know something this should have been number one in the list and i totally overlooked it.
This must cost companies a fortune.

LCDRIVER:

gettin-on:
THEN YOU HAVE ACCIDENT DAMAGE ETC
THAT NOT WORTH PUTTING THROUGH INSURANCE

You know something this should have been number one in the list and i totally overlooked it.
This must cost companies a fortune.

Not if you employ decent drivers.

I have a driver on sick, been on sick for over a year, had to pay ssp for 6 months, to which you must also add his hol pay, as even though he is on sick he gets hol pay, a year an half later he now still off work, with post traumatic stress disorder, after an accident… still on holiday pay, currently sueing the company for not training him to use a ratchet strap, not sure how ya put a price on all that shag, its been a joy…lol

richmond:
I have a driver on sick, been on sick for over a year, had to pay ssp for 6 months, to which you must also add his hol pay, as even though he is on sick he gets hol pay, a year an half later he now still off work, with post traumatic stress disorder, after an accident… still on holiday pay, currently sueing the company for not training him to use a ratchet strap, not sure how ya put a price on all that shag, its been a joy…lol

I bet it has mate, it’s things like this that make you scratch your head-not all drivers take the ■■■■ like this though buddy, most are hard working and work well for a fair days pay.

Can i ask you a question?
Without getting too personal lets say for arguments sake as an employer you are paying that fella £10 an hour, plus all the other ■■■■■ you have to pay, add it all together you must be out of pocket for at least £15 an hour?

I have split these posts for a reason you see because according to some people the margins that agencies work on (in another thread) they charge less than £2 per hour over the drivers cut it’s so competitive?

So down where we are, working for an agency you are lucky to earn over £9 per hour PAYE , and if agencies only take £2 per hour for there cut-you would actually be saving £4 an hour and never have to employ anyone?

We both know it don’t work like that, but it’s the reason i came on here , that said can you tell me why you don’t chose agency workers over employing, because surely they are cheaper arn’t they?

LCDRIVER:
We both know it don’t work like that, but it’s the reason i came on here , that said can you tell me why you don’t chose agency workers over employing, because surely they are cheaper arn’t they?

They’re not cheaper when they change the driver every few weeks leaving you to train up every new driver they send on the ins and outs of the job.

They’re not cheaper when the driver they send only passed their test last week and has repeated bumps and scrapes which you have to pay to repair.

I’m sure there are plenty more reasons too…

A proper employed full time driver might look more expensive on paper but if you find a good one they will do the job better, quicker, with fewer accidents, etc. than an agency driver.

Paul

Some good points there, firstly i pay my men by the day and then they get bonus for certain types of jobs, if you pay a driver by the hour, in our game there is no incentive to get the job done quicker they will just toss it off, sorry to be blunt, secondly agency men are no good in my feild of work which is a bit specialist.Most agency men are tossing it off for as many hrs as they can get, thats how they make there money, most agencys have little overheads so if they put two pound an hr on a twelve hr shift, it soon all adds up, they make most though on overtime, i hate agencys and the breed of drivers that come with them. I should think that any employer who you talk to, will tell you that employing people is a nightmare, as what we are looking for, is really clones of ourselves, however , other people have other interests in life. the driver who is off sick, actually begged me for a job, and the job center also asked me to take him on as he was long term unemployed.Asn to the costs, well my wife sorts all that out, but you do have ni contibutions , holiday pay, and then cover for when they are on holiday, often the best option is a self employed driver, but then you have problems if they work for you too long, then hmrc deem them to be employed by you.

richmond:
Some good points there, firstly i pay my men by the day and then they get bonus for certain types of jobs, if you pay a driver by the hour, in our game there is no incentive to get the job done quicker they will just toss it off, sorry to be blunt, secondly agency men are no good in my feild of work which is a bit specialist.Most agency men are tossing it off for as many hrs as they can get, thats how they make there money, most agencys have little overheads so if they put two pound an hr on a twelve hr shift, it soon all adds up, they make most though on overtime, i hate agencys and the breed of drivers that come with them. I should think that any employer who you talk to, will tell you that employing people is a nightmare, as what we are looking for, is really clones of ourselves, however , other people have other interests in life. the driver who is off sick, actually begged me for a job, and the job center also asked me to take him on as he was long term unemployed.Asn to the costs, well my wife sorts all that out, but you do have ni contibutions , holiday pay, and then cover for when they are on holiday, often the best option is a self employed driver, but then you have problems if they work for you too long, then hmrc deem them to be employed by you.

I am self employed and not a ltd co, i am also an owner driver, i also do fitting work and welding and fabrication, often for the same firms year after year and i have never yet had a problem with hmrc
i have never yet had a problem working for a firm to long, the only problems i have seen are the “so called self employed” who dont pay taxes due as they’ve spent the money! this type soon come unstuck

moose, you have several differant customers, so that would keep hmrc happy, its when ya stay at the same co, also a good tip for around here, is people who have worked on farms, or have family on farms, they are used to a bit of graft…

That looks like a good bit of market research for LCDriver :wink:

Wheel Nut:
That looks like a good bit of market research for LCDriver :wink:

Yes it is mate, proving a lot more successful than the other thread but I will get there sooner or later…

The figures I added up were around 40 percent on top of the hourly rate, most of us seem to agree around the same margin so I am happy with that, and the thing is employment agencies also know this.

For an employer to hire that driver perminantly, that’s the true cost.

With national rates hovering around £8.50 to £9.00 per hour for PAYE drivers working for agencies I have now proven to my self that my business plan will work thanks to this forum.

But it is yet to answer the question of how much agencies are charging certain customers, my particular interest are major blue chip clients.

If anybody can help me with this I would really like a chin wag about this.

Thanks Fella’s

Rob

Wheel Nut:
That looks like a good bit of market research for LCDriver :wink:

:wink:

Thanks for that info! As an employed driver at a medium size company I now can see the point of view of the gaffer! I worked for big fleet companies from the off and was hourly paid etc! And never really had any idea that a smaller company had such a fine balancing act going on! I never went for the max hours mentality though! Nearly always a "get the job and day finished ASAP! Cheers for that! :sunglasses: