Education & Work Real cost of a wage

Yes. Mining does indeed pay the most.
I've heard of truck drivers in the middle of qld earning six figures... Delivering the value of driving a truck.- back in the day..might be less now.
Most engineering grads working in cbd s won't get as much- as evidenced by the salary on offer by BCG in the article - and bcg is about as blue as any blue chip worldwide. Still pretty good for a graduate.

 

10bn is nothing??

 

A construction project is not really a good example because it is a job that can't be shipped O/S for someone on a lower hourly rate to perform.

Incidentally; my wage cost for my business is above 20% of the turnover, currently. Not 15% like the construction project, but my costs for parts and materials may be lower than theirs.

The comparables need to be made with products/services that can be produced/sold here in Aus, versus being able to be produced O/S then sold here.

One of our good friends spends half her year travelling to various O/S locations to train Telstra call-centre Staff...the folks you talk to when you call with a complaint or account issue, etc.

Why are those jobs not located here in Aus?

That's the sort of comparison you need to use.

 

70bn? What are they building? An entire city?
Not even country village brisbane is worth near that much.

 

If you take materials out of the $70bn and then look at wages cost of the non-material component then it would be a significantly higher percentage.

if you can keep total labour costs (including the oncosts) under 30% then doing very well. The old rule of thumb in professional services business used to be 1/3 labour 1/3 other costs 1/3 profits. I believe for the majority of professional services businesses the first 2 have increased and the last one decreased.

 

Gorgon project worlds largest gas plant offshore australia.

 

mate with this one all of the modules (all the steel for the gas plant) where built in korea and overseas and then shipped here then put together like a jigsaw puzzle. If those modules where built in australia I would say chuck another 70billion on top of that 70 billion

 

The case for the prosecution rests.

 

They do pay ridiculous rates out there. When I heard hiw much a contracts administrator was being paid - not worth it IMHO for the sacrifice of being in the middle of nowhere and the wildlife starts to look attractive

 

Yeah, no offence to anyone, but if the wildlife starts to look attractive in remote mining towns, then... No amount of money can fix that.

 

Interesting question, one that i've been thinking about a fair bit privately. As a small business operator, i'm about to go through this and have done some rough budgeting. I believe the first employee 'on costs' will likely be the most expensive as it requires quite a large 'infrastructure' improvement budget that can be diluted down with future employees.

From an initial base wage perspective vs overall investment in hiring (cost), the employees base wage accounts for less than 50%. Base wage is roughly 50k, total cost is over 110k. The 60k difference is a combination of a small scale marketing budget, bonuses/incentive/super/employment based remuneration, infrastructure (computing, IT, systems, office space, etc).

Moving beyond the first employee though, there'd be significant economies of scale with each additional worker added on, so i imagine future workers would be much closer to the initial wage.

This of course would be very different depending on the industry. I imagine the cost of taking on extra staff at a cafe may be closer to true cost than for a professional service industry.