Cost to a company of a permanent employee?

BrunoM

Hi,

Apologies if this is the wrong board and this needs to be moved or just isn't appropriate.

I am trying to put together a 'business case' for my boss's boss to accept that there is an immediate benefit to giving me a permanent role vs my contracting through an agency as I am at the moment. Obviously there are a host of other considerations on both sides of the scales, but financially speaking, I know my company pay the agency around 30% more than the agency then pay as my gross salary (from which tax/NI comes as usual).

What I am trying to understand is, is there a clear and measurable cost to the company (and more importantly, my boss's cost centre!) above and beyond my salary?

Firstly, are there some "government costs"? They pay some NI on top of my NI contributions, or something?

Secondly and probably less significantly, is it likely that things like company pension and health care schemes appear as a charge per employee on an individual cost centre? (I work for a vast multinational...).

Basically I am trying to distil the financial aspects to something like

"turn me perm at the same salary, and you immediately save 30% in agency costs, against an extra 5% in employee-benefits type costs, plus another ~8% savings as I no longer get paid over-time."

Is this a waste of time? Comments appreciated

Astaroth

I would say it is a waste of time... I assume that you are doing this off your own back rather than having to been asked to do it? (unless you are trying to prove your finance ability type of thing)

1) your employers have to pay additional tax on top of the tax you have to pay.

2) they will have to acrew for pension, sickness, annual bonuses etc

3) they have to pay a finders fee to the agency

4) as you will have a contract with them they will then have to give you notice/ redundancy if they want to "get rid of you"