20 July 2025
Good question! The salary-to-turnover ratio can vary widely depending on the industry, business model, and company size. However, here are some general guidelines:
Service-based industries (like IT, consulting, accounting): Salary expenses often form a large chunk, typically 30% to 50% of turnover, because these businesses are labor-intensive. Manufacturing or product-based businesses: Salary might be a smaller percentage, say 10% to 20% of turnover, since a bigger share goes to raw materials and other costs. Retail businesses: It could range anywhere from 5% to 15% depending on staffing needs. In summary: Salary / Turnover × 100 = % of turnover spent on salaries