Employees wages vs profits.?

Does anyone know is there a percentage that one should make off the cost of employee. In otherwords... hiring an employee may have a set cost...say 55.00 and hour with benefits and everything and then there is an increase in overhead... Ie office space, insurance, vehicles. Is there a set amount that an employer should expect in return. Like three times or four times the cost... Or a percentage increase.... Or????

If it takes another employee to keep customers happy about your service and coming back, then anything over breaking even should be considered good. Not all employees can bring any profit to a company. Administrative and finance (to name just a couple of areas) employees are a necessity in some companies, but neither area brings any revenue at all.

Really depends on what business you are in. For some businesses, employee cost is on average a much higher percentage than on others.

This depends on the industry. In the auto industry, for instance, they are losing money for each hour worked per employee. That's why the auto companies are trying to move operations over seas because the Chineese only work for $2 per hour where as Americans work for $25 per hour.

In the computer industry, this could be $30 per hour worked or $200 per hour worked depending on how popular the product is.

You can always go old school manufacturing rules.
You should make $3.00 for every $1.00 you pay your employees. Be sure to include FICA match, FUTA, SUTA and health.