What impacts cost and what doesn't? What impacts cost and what doesn't?

What impacts cost and what doesn't?

Adrian Remedios Adrian Remedios

Any change that increases the cost of an employee to
the business is considered cost impacting. This includes:

  • Fleet car allowances
  • Salary increases
  • Changes in working hours for full-time equivalents that increase the hourly
    rate
  • Bonuses
  • Assigning or removing company cars

Changes that reduce costs do not need to go for approval. For example, reducing
someone's working pattern may increase their hourly rate, which can impact costs.
Positive cost impacts require approval, while negative cost impacts do not.
Example: Increasing an employees salary or assigning a company car are cost
impacting changes. Reducing an employees working hours is a cost reducing
change and does not need approval.


Car Allowance Policy: Employees who drive less than 5,000 business miles should
not have a car allowance and it should be rolled into their basic salary. For roles
requiring more than 5,000 business miles, a car allowance is appropriate.
Example: An employee who drives 4,000 business miles should have their car
allowance rolled into their basic salary. An employee who drives 6,000 business
miles should receive a car allowance.

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