"Tesco hands store staff 7% pay rise.
Supermarket’s third pay increase in a year puts it slightly ahead of Aldi and Sainsbury’s."
So says The Guardian this morning (staff working in London Boroughs will receive 8.40%).
We spent 25 years doing financial forecasting on the reliable basis that your PAYE payroll should be 17.50% of your sales (increase to 20% if your hygienists/therapists are salaried).
That KPI is now rising again and across my own client base I'm seeing between 22.50% - 25.00%.
That's coming straight off your bottom line unless you take action.
Time for a reminder - who is going to pay for those pay rises?
Team A - you and your family - take less home;
Team B - the staff - employ fewer people;
Team C - the self-employed clinicians - pay lower hourly rates/percentages;
Team D - your suppliers - try and get cheaper lab and materials;
Team E - the patients - put your prices up.
IT'S ALWAYS TEAM E - the patients.
Attached is a handy little calculator to transfer pay rises into price rises. It's one of the many spreadsheets, templates and PDFs that we use here in The Extreme Business 100.
Comments