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Getting a Complete Picture of Employment Costs

High annual base salary (ABS) does not necessarily correlate with higher total employment cost, particularly when considering a host of factors, according to Mercer’s 2014 Total Employment Costs around the World. The report helps HR and business managers assess the real total employment costs regionally and by career level and position in 72 different markets across the Americas; Asia Pacific; and Europe, Middle East, and Africa. The total employment cost is the sum of all direct and indirect costs attributed to employees, including base salary, benefits, employer-paid social security contributions, and taxes.

“The total cost of employing a worker is considerably more than just take-home-pay, although employees often utilize this ‘net’ measure to evaluate other potential jobs and similar positions in the market,” said Samantha Polovina, the Mercer Principal responsible for the report. “Employers should not only obtain a complete understanding of total costs — by position and geography — and how they compare in the market, but they should communicate this real compensation package value to current and potential employees.”

Learn more about employment costs.

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