The wage on the schedule is rarely what an employee actually costs. Taxes, benefits, turnover, training, and ramp-up double the number quietly. Here's the real one.
The position
One role at a time. Run it for each.
$
What the schedule says they earn.
hrs
%
FICA 7.65% + FUTA + SUTA + workers' comp. Most ops: 10–15%.
%
Health, meals, PTO accrual, uniforms. 0% if none.
%
Restaurant industry avg: 75–150%. Retail: 60–90%.
$
Recruiting + onboarding + lost productivity per replacement.
hrs
Hours worked at reduced productivity (assume 50% output) before fully ramped.
Real fully-loaded hourly cost
—
— what the schedule shows is —. That's the gap most ops never close.
Ramp-up productivity loss50% output during training period
—
Annual fully-loaded cost
—
From the book — chapter 3
"Every owner I've worked with under-counts their labor cost by 30–60%. Then they wonder why a 'profitable' month leaves no cash. The number on the schedule is the down-payment. The real bill comes due at the end of the quarter."
Want the full labor cost worksheet (PDF) + 5 more tools?