Labor Availability Archives | Value Investing - Business and Economic Principles

Labor Availability

Every service related business wants to maximize the hours the staff bills or renders services to customers. When they are working, the business gets to bill for time and generate revenue. Maximum revenue means the best chance at creating the largest profit. The following articles address labor availability, the various formulas and nuances related to human labor.

Labor Burden in Construction – Proper Rate Formula

Construction Industry Standards / By David J Hoare MSA / 07/20/2020 02/27/2022

Labor burden in construction is a value added on to the respective hourly labor base wage to to determine the total cost per hour for a particular trade or employee. Labor burden rates are used extensively with estimating and recording actual results. The key to labor burden is that the rate is NOT universal. The value is different per company and in some cases per trade/employee. The rate is highly dependent on the various employee benefits provided and the structure of the organization.

Operate Within Your Range of Production

Production Control / By David J Hoare MSA / 02/13/2013 02/26/2022

One of the basic business concepts is range of production. It means maximizing the capacity (range) of the assets in your operation. When the business operation goes beyond the maximum production range, costs associated with the marginal production generally exceed the revenue generated with the marginal increase. To maximize profit in any business, operate within your range of production.

The Different Forms of Compensation

Human Resources Management / By David J Hoare MSA / 01/21/2013 02/25/2022

There are two different forms of compensation provided to employees; direct and indirect. Direct forms of compensation have a multitude of types or methods, from salaries to bonuses. Indirect compensation is primarily the various types of benefits and long term incentives. This article is an introduction to the terminology of compensation.

One of the forms of compensation is direct remuneration for services rendered by the employee. The term used for this is wages. It consists of four different groups of payment from the employer to the employee. They are salary, hourly, commission and bonus types of wages.

Labor Availability – How to Calculate Maximum Available Hours

Human Resources Management, Service / By David J Hoare MSA / 01/14/2013 02/25/2022

Every service related business wants to maximize the hours the staff bills or provides services to customers. When they are working, the business gets to bill for time and generate revenue. Maximum revenue means the best chance at creating the highest profit.

Controlling Food Costs in the Restaurant Industry

Food Service Industry / By David J Hoare MSA / 01/08/2013 02/27/2022

The top two costs associated with owning a restaurant is labor and food. Controlling these prime costs in effect is the bottom line in your business. How do you control food costs? First identify the correct quantity and quality of food you serve.

The True Cost of Labor

Report Analysis - How to Read the Statements, Service / By David J Hoare MSA / 01/01/2013 02/25/2022

I laugh at the definition of labor costs because in my opinion the so called experts only have it half right. Labor costs are more than just gross wages and benefits. It should include the costs of insurance, employer taxation, human resources management and incentives. All of the costs associated with delivering the human element of service should be included. Let’s explore these costs from the most expensive to the least.