Skip to content
Bryq
  • Why Bryq
    • Business Leaders
    • HR Executives
    • Recruiters
    • HR Consultants
    • Startups
    • SMB
    • High Volume Hiring
    • Diversity and Inclusion
  • Product
    • Customer Testimonials
    • Science
      • Cognitive Skills
      • Bias-free hiring
      • Personality Assessment
      • Leadership Potential
      • Candidate Experience
    • Features
      • Job Profiles & Customization
      • Blind screening
      • Candidate Comparison
      • Online Proctoring
      • Integrations
      • Implementation & Onboarding
    • Partners
  • Pricing
  • Candidates
    • Sample Questions
  • Log in
Free Trial

Back to Human Resources Definitions

What is Labor Cost

The labor cost for an organization is how much it costs them to employ their staff. This includes not only the total of all wages paid but the cost of payroll taxes and employee benefits as well. The labor cost consists of both overheads and direct costs associated with having employees.
Wages are an example of a direct cost. Indirect costs are those which support the staff doing their work, such as the maintenance of computers and other equipment. When companies set the prices for their products or services, they take into account not only the cost price of the item but how much it costs them to produce or provide that item. This comprises of labor costs, overhead, and materials.

PrevPreviousKey Performance Indicators (KPIs)
NextMinimum wageNext

Blind screening, great candidates and improved Diversity & Inclusion are only a click away.
Want to know how?
Just schedule a demo and we’ll show you in 30′.

Book a Demo

Solution

Customer Testimonials
Bias-free hiring
Science
Cognitive Skills
Personality Traits
Leadership Potential
Features

Resources

Blog
Help Center
FAQ
Human Resources Definitions

Company

About
News
Press
Careers
Contact Us

Login

Linkedin-in
Facebook-f
Twitter
Vimeo-v

Newsletter

Sign up to get HR Tips and blog content

Terms & Conditions | Privacy Policy | Cookies Policy