The Hidden Costs You Should Be Reporting On

April 8, 2016
The Hidden Costs You Should Be Reporting On

If you’re in charge of reporting on how much money your people are costing your company, then it should go beyond a simple export of recruitment, training and salary costs. There are a number of hidden costs that are pretty easy to forget!

Desk Space

It’s so easy to forget that desk space has a very real price tag attached to it!

To work out a rough idea of how much desk space costs you per person, you simply need to divide the building’s rent by the number of people using it. Of course, bigger weighting should be applied to people with their own private offices, but it’s a good start.

If you haven’t actually got your first office yet and are trying to work out how big a space you’ll need, this office space calculator is a pretty good tool.


That electricity bill doesn’t come from nowhere – your employees can guzzle electricity at lightning speed, and not just because of the computers they’re using. Mobile phones on charge, vending machines, automatic doors and lighting all play a role in your quarterly power bill.

Again, you can work out a rough cost-per-person by dividing your total bill by your headcount.

Office Supplies

Oh how sneaky this hidden cost is!

How often are you having to re-fill the stock room? Are employees using pens wisely, or are they taking them home by the cart-load?

It’s important to supply your employees with the tools they need to do their job, but do you know how much it costs?

Reporting Hidden Costs

There are plenty of other hidden costs, too. For example, sick days can really rack up a big bill, and even the cost of each employee surfing the Internet plays a role.

So why should you be reporting these hidden costs? Well, it helps you to work out the ROI of your HR department, for a start. Secondly, it helps you understand the areas of your business that are costing the most money.

It’s pretty easy to report hidden costs. You can either write yourself a list of hidden costs you’d like to analyse, and then do the manual calculations yourself; or, you can use People®’s Explosive Reporting tool to instantly generate a powerful HR report that shows the hidden costs within your company.


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