Labour costs are the most difficult costs to calculate for estimation. Traditionally, there are two ways to calculate labour costs: time-rate pay and piece-rate system. The first one counts the hours spent by employee to complete a task or project within a definite time period. The second one counts the number of completed jobs, like number of components an employee produced within a definite time period. Both labor costs calculation methods have positive and negative sides; however, they can be applied to a company depending on its field of activity. Whether your company uses time-rate pay or piece-rate system to calculate labour costs, you need an efficient system that allows registering the tasks assigned to the employees and counting work hours spent on completion of these tasks. Such a system should also count not only hourly wage of the employees, but also bonuses or penalties.
VIP Task Manager is a task creating and tracking system that allows to assign tasks to employees and set up custom indicators to calculate labour costs. Custom Fields feature allows to track actual hours employees spent to complete their tasks, and calculate labour costs by using specific formulas. For the companies which use piece-rate basis, Custom Fields feature offers a possibility to set up fixed tariffs for the tasks and define amount of penalty/bonus. In VIP Task Manager all tasks and projects can be tracked and supervised, so that the manager has full control over the working process.
Action planAction plan:
- Start VIP Task Manager
- To create labour costs indicators, go to Tools - Custom Fields
- You can use formula in Custom Filed Editor to make mathematical operations with the indicators. For example, you can create the column "Bonus" and add formula that multiplies normal wage by 15%