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Calculating the true cost of an employee

Employing staff is a big step if you have never done it before. It isn’t as simple as just paying their wages. Before you take that leap, best get some insights into the actual cost of employing individuals within your organisation. Congratulations though, hiring quality talent and extra help will mean more growth and more happy customers. The following steps will help you more accurately calculate the total remuneration expenses and hidden costs associated with having an employee on board.

Read more: Calculating the true cost of an employee

Steps 1-3: Direct Remuneration Costs Entry

Step 1: Basic Annual Salary and Hours

Begin by entering the employee’s contractual Basic Gross Salary before any deductions. If you have part-time employees, provide their annual pay and the number of hours worked per week. The calculator will automatically compute the Hourly Rate of pay based on this information. Additionally, input the National Insurance (NI) Letter Code, typically set to ‘A’ by default, but adjust if needed to reflect the employee’s specific NI Code Letter.

Step 2: Enter Additional Payments In Step 2, input any additional payments, such as Annual Bonuses, Commissions, Overtime, and other taxable earnings. The calculator will display the Total Taxable Income and calculate the Employer’s (Secondary) NI Contribution based on the selected NI Letter Code, presenting the Total Salary Cost.

Step 3: Enter Optional Benefits This section allows you to input other taxable benefits, considering factors like Workplace Pension contributions and Salary Sacrifice Schemes. The calculator will reveal the Benefit in Kind Class 1A NICs (P11D) at a rate of 13.8%. It will also show the Total Payroll Cost, which encompasses the direct cost of employee remuneration, including benefits, as well as the Employer’s NI Contributions.

Unveiling the Hidden Costs

Step 4: Enter Facilities and Other Costs Step 4 focuses on individual-specific costs such as software, IT resources, and training, which may not always be apparent but contribute to the overall expenses associated with an employee.

Step 5: Enter Apportionment of Office Costs Capture the general business costs shared by all employees in Step 5. These costs, though often overlooked, can significantly impact your calculations.

Step 6: Enter Other Costs and Potential Liabilities Step 6 lets you account for miscellaneous costs and potential future liabilities, providing a holistic view of the financial aspects of employment.

Step 7: Enter Holidays and other lost time In this section, you can consider the impact of holidays, sickness, and wasted/unproductive time on employee costs. Enter the appropriate figures for holiday entitlement, sickness rates, and unproductive time based on your organization’s circumstances.

Unveiling the True Cost of an Employee

The True Cost section reveals the actual cost per year, per day, and per hour, offering a comprehensive perspective on the expenses associated with an employee. It will also display the multiple of salary, illustrating that the True Cost of an Employee is often greater than 1.7 times their basic salary.

Please note that the calculator may include National Insurance for employees under the age of 20, even though it is typically not applicable in most cases for this age group.

By following these steps and utilising the Engage & Prosper True Cost of an Employee calculator, you can gain valuable insights into the true financial implications of your workforce, enabling informed decision-making and resource allocation within your organisation.

Understanding Neuro Change Challenges

In today’s fast-paced and ever-changing world, the ability to adapt and embrace change is crucial for personal and professional growth. However, change can be challenging, especially when it involves making significant shifts in our mindset and cognitive processes. This overview of our neuro change challenge, explores the concept of mindset shift and cognitive shift, and offers practical strategies to navigate through this transformative process. We will delve into the intricacies of the human brain, the power of neuroplasticity, and the role of mindset and cognition in our ability to adapt and grow.

The Neuro Change Challenge

The neuro change challenge is a short coaching and practical programme to transform, rest or re-energise your company culture. Ask us for more information or join our next programme.

It also refers to the difficulty individuals face when trying to make significant changes in their mindset and cognitive processes. It involves rewiring the neural pathways in our brains to adopt new ways of thinking and perceiving the world around us. This challenge is often encountered when individuals are confronted with new information, experiences, or situations that require them to let go of old beliefs and embrace new perspectives.

The human brain is a complex organ, with billions of neurons interconnected in intricate networks. These networks, or neural pathways, are formed and strengthened through repeated experiences and behaviors. When we encounter new information or experiences, our brain attempts to fit this new data into existing neural pathways. However, when the new information contradicts our existing beliefs or ways of thinking, we face the neuro change challenge.

This challenge is not just about learning new information or skills. It’s about fundamentally changing the way we think, perceive, and interpret the world around us. It’s about breaking down old neural pathways and creating new ones that support our growth and development. It’s about overcoming the fear of the unknown and embracing the discomfort of change.

Mindset Shift

A mindset shift is a fundamental change in the way we perceive and interpret the world. It involves letting go of limiting beliefs and adopting a more open and growth-oriented mindset. This shift is essential for personal and professional development, as it allows us to overcome obstacles, embrace new opportunities, and reach our full potential.

One of the key aspects of a mindset shift is the ability to recognise and challenge our existing beliefs and assumptions. Often, our beliefs are deeply ingrained and can act as barriers to change. They can limit our potential and keep us stuck in old patterns of thinking and behaving. By questioning and examining these beliefs, we can create space for new ideas and perspectives to emerge.

Another important element of a mindset shift is cultivating a growth mindset. A growth mindset is the belief that our abilities and intelligence can be developed through dedication and hard work. This mindset allows us to embrace challenges, learn from failures, and persist in the face of setbacks. By adopting a growth mindset, we can overcome the fear of change and embrace new opportunities for growth and learning.

Cognitive Shift

While a mindset shift focuses on our beliefs and attitudes, a cognitive shift involves changing the way we think and process information. It requires us to rewire our neural pathways and develop new cognitive habits. This shift is crucial for adapting to new situations, solving complex problems, and enhancing our cognitive abilities.

One of the key strategies for achieving a cognitive shift is through deliberate practice. Deliberate practice involves engaging in focused and purposeful activities that challenge our existing cognitive abilities. By pushing ourselves outside of our comfort zones and consistently practicing new skills, we can rewire our brains and develop new neural connections.

Another effective strategy for achieving a cognitive shift is through exposure to new experiences and perspectives. By immersing ourselves in diverse environments and engaging with people from different backgrounds, we can broaden our horizons and expand our cognitive capacities. This exposure allows us to challenge our existing mental models and develop new ways of thinking and problem-solving.

Strategies for Navigating new thinking

Navigating the neuro change challenge requires a combination of mindset and cognitive strategies. Here are some practical strategies to help you embrace change and navigate through this transformative process:

  • Self-reflection: Take time to reflect on your existing beliefs and attitudes. Identify any limiting beliefs that may be holding you back and challenge them. Ask yourself why you hold these beliefs and whether they are serving you well. By becoming aware of your beliefs, you can begin to let go of those that no longer serve you and adopt new perspectives.
  • Embrace discomfort: Change can be uncomfortable and challenging. Embrace the discomfort and see it as an opportunity for growth. Push yourself outside of your comfort zone and take on new challenges. Remember that growth happens outside of your comfort zone.
  • Seek feedback: Feedback is essential for growth and learning. Seek feedback from trusted individuals who can provide you with constructive criticism and help you identify areas for improvement. Be open to feedback and use it as a tool for personal and professional development.
  • Practice mindfulness: Mindfulness is the practice of being fully present and aware of the present moment. It can help you develop self-awareness and cultivate a non-judgmental attitude towards your thoughts and emotions. By practicing mindfulness, you can become more attuned to your cognitive processes and make conscious choices to shift your mindset and thinking patterns.
  • Continuous learning: Embrace a lifelong learning mindset. Seek out new knowledge and skills that can help you adapt to change and enhance your cognitive abilities. Take courses, read books, attend workshops, and engage in activities that challenge your existing knowledge and expand your horizons.


Our neuro change challenge is a transformative process that requires individuals to make significant shifts in their mindset and cognitive processes. By understanding the concept of mindset shift and cognitive shift, and implementing practical strategies, individuals can navigate through this challenge and embrace change for personal and professional growth. Remember, change is inevitable, but with the right mindset and cognitive habits, it can be an opportunity for growth and learning. Embrace the neuro change challenge as a journey of self-discovery and personal development, and remember that every step you take towards change is a step towards growth.

The Power of Motivated Staff: How Company Culture Shapes Productivity

The Power of Motivated Staff - How Company Culture, Shapes Productivity - Engage & Prosper

In the fast-paced world of business, productivity is often seen as the holy grail. Companies invest heavily in technology, processes, and strategies to boost their output. However, there’s a key ingredient that can make or break the productivity equation: staff motivation. Motivated employees are not just more productive; they’re also more engaged, creative, and loyal. In this blog, we’ll explore why staff motivation is critical for productivity and how company culture plays a pivotal role in shaping that motivation.

Read more: The Power of Motivated Staff: How Company Culture Shapes Productivity

The Link Between Motivation and Productivity

Before delving into the role of company culture, it’s important to understand why staff motivation matters so much. Motivated employees are those who are driven, enthusiastic, and committed to their work. They approach tasks with a positive attitude and a sense of purpose. Here’s why this matters:

  1. Higher Productivity: Motivated employees tend to be more productive. They are more likely to put in the effort required to meet and exceed their goals. When employees are motivated, they’re not just working for a paycheck; they’re working towards a shared vision.
  2. Better Quality Work: Motivation often leads to higher quality work. Employees who are passionate about what they do take more pride in their work, pay closer attention to detail, and strive for excellence.
  3. Innovation and Creativity: Motivated employees are more likely to think outside the box. They’re open to new ideas and approaches, which can lead to innovation and a competitive edge in the market.
  4. Lower Turnover: Motivated employees are less likely to leave their jobs. They feel a strong sense of loyalty and attachment to the company, reducing turnover rates and the associated costs of recruitment and training.

Now that we’ve established the importance of staff motivation, let’s dive into how company culture and employee experience impact motivation both positively and negatively.

Positive Impact of Company Culture on Staff Motivation

A company’s culture encompasses its values, beliefs, norms, and behaviours. It sets the tone for how employees interact with one another, with management, and with their work. When company culture is positive and aligned with the values of the employees, it can be a powerful force for motivation:

  1. Alignment of Values: A strong company culture reflects the values of its employees. When employees feel that their personal values are in sync with the company’s values, they are more likely to be motivated. They feel a sense of purpose and meaning in their work.
  2. Recognition and Rewards: A culture that recognizes and rewards employees for their contributions fosters motivation. When hard work is acknowledged and rewarded, employees are motivated to continue putting in their best effort.
  3. Open Communication: A culture of open communication encourages employees to voice their opinions, share ideas, and provide feedback. When employees feel heard and valued, they are more motivated to contribute positively to the organisation.
  4. Development Opportunities: A culture that invests in employee development and growth provides a strong motivation factor. Employees are motivated to improve themselves when they see that the company is committed to their professional advancement.
  5. Inclusivity and Belonging: A culture that fosters inclusivity and a sense of belonging can greatly motivate staff. When employees feel that they are part of a supportive and inclusive community, they are more likely to be engaged and motivated.

Negative Impact of Company Culture on Staff Motivation

Conversely, a toxic or negative company culture can have detrimental effects on staff motivation:

  1. Micromanagement: A culture of micromanagement can stifle motivation. Employees need autonomy and trust to feel motivated. When they are constantly monitored and micromanaged, it erodes their sense of ownership and initiative.
  2. Lack of Recognition: Failing to recognise and appreciate employee efforts can lead to demotivation. When hard work goes unnoticed, employees may become disengaged and uninspired.
  3. Unclear Expectations: If company expectations and goals are unclear or constantly shifting, it can lead to confusion and frustration among employees. This uncertainty can undermine motivation.
  4. Bullying or Harassment: A culture that tolerates bullying or harassment can be incredibly demotivating. Employees who feel unsafe or disrespected at work are unlikely to be motivated.
  5. Limited Growth Opportunities: When employees perceive a lack of opportunities for advancement or growth within the company, they may become demotivated and seek opportunities elsewhere.

In conclusion, staff motivation is a critical factor in determining productivity and overall success in the workplace. Company culture plays a pivotal role in shaping employee motivation, either positively or negatively. A positive culture that values employees, aligns with their values, and provides opportunities for growth and recognition can significantly boost motivation and, consequently, productivity. Conversely, a toxic or negative culture can lead to demotivation, disengagement, and reduced productivity. Therefore, organisations must invest in fostering a healthy and motivating culture that empowers their staff to thrive and excel. After all, a motivated workforce is not just an asset; it’s the driving force behind a company’s success.

If you’d like to learn more, our free Employees Scorecard Quiz.
Simply answer 10 short questions about your staff and company culture and we’ll send you a personalised score and report on how to build resilience, unlock potential and drive high performance in your business.

Want more information and insights? Sign up to our employee engagement newsletter to hear more fresh insights from the blog.

Engage & Prosper is a UK-based privately owned Employee Engagement Consultancy and Social Enterprise, on a mission to help organisations develop a highly productive and fulfilling workplace culture, with their people, through enhanced employee engagement strategies, fabulous and effective internal communications platforms and tailored reward and recognition programmes.

For more information on Engage & Prosper or to discover how we can help you achieve your organisational and people goals please call +44 (0) 330 223 0464 or find out more at www.engageandprosper.com

The 4 Ds of Doom: How only Working from Home Affects Productivity

supposed list of benefits of working from home

The 4 Ds of Doom: How Working only from Home Affects Productivity

In the ever-evolving landscape of modern work, the COVID-19 pandemic ushered in a new era of remote working. While it brought numerous benefits, such as eliminating the daily commute and offering more flexibility, it also introduced a set of challenges that we’ve come to know as the “4 Ds of Doom”: Dogs, Doorbells, Deliveries, and Distractions. In this blog post, we’ll delve into these formidable foes and explore how they impact productivity when working from home.

Read more: The 4 Ds of Doom: How only Working from Home Affects Productivity

Dogs: The Four-Legged Co-Workers

The first “D” on our list is a delightful but often demanding one – dogs. These furry companions are undoubtedly a source of comfort and joy. However, when you’re trying to concentrate on that critical report or participate in a crucial virtual meeting, Fido’s barking or incessant desire to play fetch can quickly disrupt your flow.

Beyond the interruptions, dogs also require attention, walks, and care throughout the day. While these breaks can be refreshing, they also steal valuable time from your work hours and add to the list of responsibilities you must juggle.

Doorbells: The Constant Interruption

The next nemesis in line is the doorbell. It’s amazing how often it rings when you’re working from home! Whether it’s the delivery person dropping off packages, a neighbor stopping by for a chat, or a solicitor trying to sell you something you don’t need, the doorbell seems to have an uncanny knack for going off at the most inconvenient times.

Each time you answer the door, it not only interrupts your work but also takes a slice of your precious time and focus. Regaining that lost momentum can be challenging, and it can throw your entire schedule off track.

Deliveries: Convenience or Time Thief?

Online shopping and home deliveries have become increasingly popular, and for good reason. They save time and provide convenience. However, when working from home, these deliveries can turn into a double-edged sword. The constant influx of packages not only distracts you when they arrive but also tempts you to take a “quick break” to unbox your latest purchase or check out what’s inside.

Moreover, the time spent receiving and managing deliveries can add up significantly, contributing to a drain on your productivity. It’s essential to strike a balance between the convenience of online shopping and maintaining focus on your work tasks.

Distractions: The Ever-Present Temptations

Lastly, and perhaps most significantly, are the myriad of distractions that abound in a home environment. From household chores and the allure of the TV to the siren call of the fridge, the distractions at home can be relentless.

Unlike the structured office environment, where colleagues and managers keep you on track, working from home requires strong self-discipline to resist these temptations and stay productive. It’s all too easy to fall into the trap of procrastination when there’s no one looking over your shoulder.

The Importance of Balance

While the 4 Ds of Doom can undoubtedly impact productivity when working from home, it’s essential to remember that remote work also offers significant advantages. The elimination of the daily commute saves time and reduces stress, while the flexibility to manage your schedule can lead to better work-life balance.

However, finding the right balance is key. For many professionals, a hybrid approach that combines remote work with in-person office time can be the ideal solution. Being physically present in the office allows for better connection and collaboration with colleagues, fostering a sense of teamwork and synergy that’s challenging to replicate virtually.

The Energizing Power of In-Person Collaboration

Working in an office environment brings a unique energy. The spontaneous brainstorming sessions, face-to-face meetings, and water-cooler chats all contribute to a sense of camaraderie and shared purpose. It’s this human connection that often leads to breakthroughs, creative problem-solving, and the cultivation of a vibrant company culture.

While technology has bridged many gaps in virtual collaboration, it’s hard to deny the palpable difference when you’re working alongside your colleagues. The energy and enthusiasm that emanate from in-person interactions can be a powerful motivator, driving individuals and teams to excel.

In Conclusion

The 4 Ds of Doom are indeed formidable adversaries when it comes to remote work productivity. However, it’s crucial to recognise that with the right strategies and a balanced approach, these challenges can be overcome. Remote work offers significant advantages, but it’s essential to be mindful of the distractions and time drains it can introduce.

By finding the right balance between working from home and collaborating in the office, individuals and organisations can harness the best of both worlds. This approach not only boosts productivity but also nurtures the essential human connections and energy that come from working together in person. So, as we navigate the evolving landscape of work, let’s acknowledge the 4 Ds of Doom while also embracing the opportunities they present for a more flexible and productive future.

Like what you’ve read? Sign up for our employee engagement newsletter to hear more, fresh from the blog.

Engage & Prosper is a UK-based, privately owned Employee Engagement Consultancy and Social Enterprise supporter organisation, with B Corp Pending status. It means we put people, planet and purpose before profit. We’re on a mission to help organisations develop a highly productive and fulfilling, collaborative workplace culture, with their people, through enhanced employee engagement strategies, fabulous and effective internal communications platforms and tailored reward and recognition programmes.

For more information on Engage & Prosper or to discover how we can help you achieve your organisational and people goals, please call +44 (0) 330 223 0464 or find out more at www.engageandprosper.com

Dog asleep on womans lap and laptop whilst she is on a work call
Dog sleeping on woman with laptop video chatting with doctors.

7 Ways to Encourage Honesty in Your Employees

Group of employees together

Image by VectorMine from Shutterstock

Encouraging honesty in the workplace is the key to building a positive work environment. Yet, the “fake it till you make it” approach seems prevalent in many companies, especially now that remote work has become a new reality.

The Effects of Dishonesty in the Workplace

A work environment where honesty is not the best policy creates a culture of distrust, miscommunication, and disengagement. The results could be detrimental – covering mistakes with lies, avoiding responsibility, and acting in one’s self-interest. Well, you can see where I’m going here.

It won’t be a surprise that these types of behaviours would lead the entire company over the cliff and right into a toxic work environment. This is where employees are pitted against one another, and teamwork is undermined.

We’ve all heard of such companies, and some of us have been “lucky” enough to experience them ourselves.

In the end, a dishonest work environment damages employee morale, decreases productivity, and shakes the company culture quite considerably and often good employees leave. So, truth be told, that’s not the way to go.

Why Encouraging Honesty in Your Employees Is Important

Instead, companies should encourage honesty and integrity in the workplace. This is how they build a positive work environment and promote a culture of trust and accountability. Team members who feel comfortable, safe, and heard, lead a healthier professional lifestyle.

They are more likely to build trust, demonstrate ethical principles, and make sound decisions that align with the company’s core values. This results in better decision-making, increased employee engagement, and higher levels of attendance and productivity. Both the employees and the company end up benefiting. Sounds like a win-win.

That’s why it’s your role as a manager, team leader or an employer to build an environment where everyone feels accepted and can freely communicate.

7 Ways to Encourage Honesty in Your Employees

We know it can be hard to figure out where to start, especially if you are new to this role. Here are some tips to help you on your way to building an honest and engaged work environment.

1. Lead by Example

As an employee, would you be honest with a manager or employer that shows even a hint of dishonesty? The journey to encouraging honesty in your employees starts with YOU. The first step is setting the tone and modelling the behaviour you want to see from your team members.

Here are some examples of integrity and honesty:

  • Don’t be afraid to admit mistakes: By being transparent about your errors, you show employees that honesty is valued and everyone is equally responsible for their actions.
  • Hold yourself accountable: Being a good role model involves following through on your commitments. If you don’t, own up to it and take responsibility for the consequences, just like any other employee would do.
  • Provide honest feedback: Giving someone negative feedback is by far one of the hardest tasks. So, most of us tend to sugar-coat or avoid the conversation at all costs. Instead, be honest and show employees that feedback is a valuable tool for growth and improvement.

When their leadership values honesty, team members are more likely to follow suit and make ethical decisions in their work.

2. Build Trust

Building trust is a critical component of encouraging honesty in the workplace. Trust between employees creates a more positive environment, allowing them to be more comfortable sharing their thoughts, opinions, and concerns.

So, how can you encourage open and honest communication in the workplace?

To build trust, leaders need to be transparent, consistent, and reliable in their interactions with employees. Try to communicate honestly, even when the news is not good, such as losing an important client or possible cuts in salaries. Also, be consistent in keeping promises and following through on your commitments.

3. Communicate Your Company’s Values – And Stay True to Them

Your company’s core values should be at the heart of everything you do, and you need to make sure your employees understand what they are.

What does your company stand for? What makes it unique? What are the priorities? Answering these questions will help you communicate company values to your employees. You can even make it a part of the onboarding process for new hires.

But hear me out – this is one of those cases when communication is not enough. Writing down that “abuse is not tolerated” is just the first step. If employees violate the rule, you need to hold them accountable.

Communicating your company’s values clearly and providing examples will help build a culture of integrity within your organisation.

4. Foster Teamwork

The road to creating an honest environment goes through teamwork. When your team members feel like they’re part of something bigger than themselves, they’re more likely to act with integrity.

Encourage your employees to work together, support each other, and build a truly collaborative employee culture. It might seem unbelievable, but in today’s work environment, employees might go through years of working in the same company and never meet each other, or even speak to one another.

Fostering teamwork also reduces the fear of failure. If team members know that they are supported by their colleagues, they are more likely to take risks and be honest about their mistakes. This leads to more open and honest communication in the workplace.

5. Recognise Good Work and Celebrate Achievements

When it comes to appreciating your employees’ hard work, giving recognition and rewards is the way to go. It can be something as simple as a shout-out in a meeting or an Employee of the Month award. You can also get creative and send a big package for updating the home office – something all of us desperately need these days!

Here are some ideas, inspired by a few great leaders I know:

  • Bonuses, profit-sharing, or even stock options
  • Professional development opportunities
  • Flexible work arrangements
  • Employee of the Month awards, peer-to-peer recognition, or a wall of fame
  • Small gifts like movie tickets or gift cards

6. Provide Ethical Standards – And Follow Yourself

There is no honest work environment without high ethical standards. Make sure to provide training and resources on ethical principles and be available to answer any questions they may have.

Providing a clear framework for ethical decision-making will help your employees navigate difficult situations and make the right choices. You can also establish a code of ethics and values that all employees are expected to follow.

7. Embrace the Differences

Individuals who feel accepted are more likely to express themselves and share their opinions without fear of judgement or discrimination. This fosters a culture of honesty, where team members are free to speak up and bring unique insights and ideas to the table, ultimately leading to more creative and innovative solutions.

Amid the rise of AI and alarming workplace automation statistics, it’s crucial for companies to recruit and retain talent in the long run. With these strategies in place, you can create a workplace that encourages open and honest communication, ethical decision-making, and a strong commitment to moral standards.

Or in other words, create an environment where highly skilled individuals would thrive, grow with the business and take the company to the next level.

Like what you’ve read? Sign up for our employee engagement newsletter to hear more, fresh from the blog.

Engage & Prosper is a UK-based, privately owned Employee Engagement Consultancy and Social Enterprise. We’re on a mission to help organisations develop a highly productive and fulfilling, collaborative workplace culture, with their people, through enhanced employee engagement strategies, fabulous and effective internal communications platforms and tailored reward and recognition programmes.

For more information on Engage & Prosper or to discover how we can help you achieve your organisational and people goals, please call +44 (0) 330 223 0464 or find out more at www.engageandprosper.com