Client Portal - Cost Breakdown Explained by Angelo Ferrari

Applying the Formula

Let's see how this formula works in practice. Imagine you hire an hourly employee at a rate of $20 per hour:

Staff Estimate: $20/hour x 1.5 = $30 per hour (total cost)
Union Estimate: $20/hour x 2.0 = $40 per hour (total cost)

Similarly, for a salaried employee earning $50,000 annually:

Estimate: $50,000 x 1.4 = $70,000 per year (total cost)

While the multiplier is a helpful starting point, it's important to remember it doesn't capture every cost associated with an employee. Companies with generous benefits offerings, complex operations or high turnover are more likely to use higher multipliers, while the lower multipliers work better for businesses with minimal benefits, simple operations and low turnover rates.

Expenses such as overhead, training and employee turnover can significantly impact the bottom line. We'll delve deeper into these additional factors below.

Benefits of Working with Powered By Ferrari.

Gain Access to Qualified candidates quickly

Talent has spent time developing pools of available staff to source more quickly from. When a company needs staff, they compete with every other company that needs that staff. Talent is able to identify more quickly increasing the odds of hiring that staff.

Reduce Hiring Risks

Risks can range from bad hires to administrative and misclassification risks. Talent is on the front lines of knowing the most current laws and regulations, ensuring that you’re in compliance. Talent is fully insured with WSIB coverage and does not pay staff cash. Talent is a legal staffing firm.

Streamline Hiring Processes

From sourcing, screening, interviewing and onboarding, Talent is a staffing firm that is able to close any gaps you have in your process helping you retain top talent and get them up to speed quickly.

At Talent, we’ve spent the last 15+ years developing and nurturing a variety of talent pools across many sectors in Hospitality.

Keep Up with Business Growth and Busy Periods

Many companies experience growth or busy periods. This often means that hiring new employees is a must. When you have a strategic staffing and recruitment partner such as Talent Emp. Inc., you’re able to engage with them to source, hire, and onboard the candidate in large groups at a time.

Make the Most of Each and Every Hire

With many different models of engagement, you may decide on a direct-hire, Temp-to-Perm or a Probation engagement with Talent. You’re then able to test out a new employee to see if they are a good fit for your work model, culture, work ethic, skills needs and most importantly customer service.

I NEED STAFF YESTERDAY!!!

What does Powered By Ferrari staffing firm do?

Powered By Ferrari serves two types of clientele: job-seekers and companies looking to hire. Powered By Ferrari sources, screen resumes, interviews candidates, calls references, complete criminal background checks and connects them with employers looking for specific skills, ie Bartending, Kitchen staff, Waitstaff, Cooks, Housekeepers etc.

Why do over 100 Companies Work with Powered By Ferrari?

Companies often work with us for their workforce needs for a number of reasons. They may be looking for a casual, part-time or full-time employee.

The company may need a handful of employees with specific skills for a certain day or week or even seasonal help.

A company often scales up and down its workforce, such as Banquet Halls in wedding season or golf courses in the summer season.

Powered By Ferrari is an excellent partner to outsource the recruitment, onboarding, and employment of the hospitality workforce.

Currently Powered By Ferrari has a 96% success rate.

Source: https://www.surveymonkey.com/ 2023.

Time is Money!!!

Time and Resources

Consider the true cost of your time. Its invaluable and its crucial to make the most of it. The process to hire staff can be quite time-consuming. Small venues often rely on the Owner or Manager to handle the hiring process.

On the other hand, larger properties have a dedicated HR representatives.

If you want to recruit effectively and efficiently, we strongly recommend following the Guide to Recruiting which outlines the 24 essential steps.

On average, each staff member will require approximately eight hours of your time - an entire day to effectively hire the right candidate. It's worth considering that your salary for that day can be equated to the dollar value of your time.

You have many other important responsibilities and tasks that require your attention. By streamlining the hiring process and making it more efficient, you can allocate more time towards those crucial activities.

Employee Cost Breakdown

Lets get over the SHOCK!!!

The average employee cost above their hourly wage, regardless of position, skills or salary is up to $20 an hour. It is crucial to note that the keyword here is "Average." Allow me to further explain the significance.

Cost Analysis in your Organization

When assessing employee costs, it is essential to consider various factors that contribute to overhead expenses. These include statutory expenses such as taxes, unemployment insurance, and WSIB.

Moreover, venue overhead costs like lighting, heating, air conditioning, water, equipment, and tools, as well as maintenance expenses, including cleaning and upkeep, should be factored in.

Another critical component to bear in mind is the cost of fringe benefits. Medical and dental coverage, vacation pay, sick pay, statutory holidays, personal days, and bereavement leave all contribute to these costs.

Additionally, personal tools such as cell phones, laptops, uniforms, stationary, and gas or per-km allowances, should be considered.

Training costs, including orientation, employee manuals, and specialized training, as well as shadowing senior staff or trainers, all contribute to these costs.

Moreover, risk costs should not be overlooked. Costs associated with resignations or unsuccessful hires can impact your organization and your time. Theft is another aspect that affects your expenses. Lack of pride and empathy for your equipment and tools that lead to breakage including items leaving your premises without authorization. Drawing from my 35 years of experience in this industry I can attest to the important significance of managing these risks effectively. This is NOT "the cost of doing business." You are paying for this cost when not hiring or managing your team effectively.

Finally, I would like to touch on the topic of unionized staff briefly. Although a complex matter, it is worth noting that in the hospitality industry, the most successful and profitable businesses tend to be non-unionized.

Hospitality thrives on a "can-do" attitude, where employees are proactive and take ownership of their responsibilities.

The attitude and work ethic of your staff should align with values such as

"Yes, I can," "Absolutely," "Right away," "Consider it done," and "My pleasure." Fostering this positive attitude is not only beneficial for your organization but also helps to mitigate financial losses. When staff are happy and appreciated, they will work with you to manage and lower costs. Long-term loyal staff are rare and should be acknowledged.

I urge you to carefully consider these factors when conducting your cost analysis. It is crucial to have a comprehensive understanding of the various expenses associated with your staff.

Hiring Cost Breakdown

Breakdown Example

Increase Your Business Efficiency and Save Money

The average cost to the owner amounts to $20 an hour (as mentioned above) when considering additional expenses. This hidden cost is often overlooked by most staff members. By partnering with Powered By Ferrari, you will save significantly for our highly skilled staff, without compromising on their quality or reliability.

This means that for every Powered by Ferrari staff member working an eight-hour shift, you will save a significant $80 each day. This reduction in cost directly impacts your bottom line. We have over 100 clients that can attest to this.

Curious about how Powered By Ferrari makes this possible? With Powered By Ferrari, your additional expense is $10 per hour and $1 is retained as profit. We generate an additional $8 profit for every shift by efficiently deploying our staff members across different venues and optimizing our operations. This strategy, combined with the large volume of staff we have working across the Greater Toronto Area, ensures mutual benefits and cost savings for both parties.

Don't let the cost of extra help burden your business. Let Powered By Ferrari be your go-to partner for all your staffing requirements. Together, we can achieve business efficiency, reduce costs, and have satisfied staff members.

If you are interested in learning more about our Powered by Ferrari, its services or would like to discuss how we can tailor our staffing solutions to your specific needs, please feel free to reach out to me directly.

Extending the Invitation

Increase your overall Success

Some establishments may not have the luxury of having an entire HR department with recruiters, payroll clerks, and hospitality trainers.

That's where we come in. Our Talent team of experts are dedicated to supporting businesses like yours with all recruiting needs.

What sets Powered By Ferrari apart is the significant cost savings we can bring to your bottom line. On average our clients have reported an annual savings of $200K, which can make a significant impact on your business's financial health.

We know that as the Owner, you are the one who sees and truly undestands the value of these savings.

I would like to extend an invitation to explore how our Powered By Ferrari can benefit your company. Let's connect and have a healthy discussion on how we can customize our resources to meet your specific needs.

I'm confident that by partnering with Powered By Ferrari, we can help you streamline your operations and increase your overall success.

Angelo Ferrari - Hospitality Professional @ Powered by Ferrari