Email

FROM: Karen Coster, GM Finance & Administration 

TO: General Manager, Human Resources 

SUBJECT: RE: Costing Out IR Activities 

You asked me for details to be able to 'cost-out' any industrial relations activities for a cost/benefit analysis. I've included: 

1. The rates of pay of those staff associated with IR initiatives 

  1. The administration or overhead costs associated with facilitating IR initiatives
  2. Any costs associated with extra/new staff resulting from IR initiatives
  3. Any costs associated with reviews of rates of pay associated with IR initiatives
  4. Any costs associated with reward and recognition programs associated with IR initiatives

For cost/benefit analysis purposes, the following applies: 

Cost Area Costing

Managers  

$50.00 an hour 

Supervisors  

$40.00 an hour 

Skilled staff (Trades, Secretarial, Administration) 

$30.00 an hour 

Unskilled staff (Labourers, Assistants) 

$20.00 an hour 

Meeting room overheads 

$20.00 an hour 

Sundry pay reviews as a result of IR initiatives 

$20,000 pa 

Reward and Recognition as a result of IR initiatives 

$10,000 pa 

Sundry administration costs (eg, computers, etc) 

$10,000 pa 

1% of increased productivity  

$20,000 pa 

1% decrease in production costs 

$20,000 pa 

1% improvement in staff turnover rate 

$5,000 pa 

1% increase in sales 

$20,000 pa 

1% improvement in absenteeism 

$10,000 pa 

1% improvement in workers compensation premium 

$7,000 pa 

One new staff member to facilitate IR initiatives 

($36,400 + on-costs) $45,500 pa  

The main variable regarding costing is associated with meetings. You will need to assume the numbers of staff attending meetings, the duration of meetings and the classification of members at meetings to cost the actual cost of meetings. 

Regards, 

Karen 

 

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