Write 8 page essay on the topic Thomas Davison finance report.Download file to see previous pages... Salaries Wages and Payroll Costs A more detailed study of the available accounting data reveals tha

Write 8 page essay on the topic Thomas Davison finance report.

Salaries Wages and Payroll Costs A more detailed study of the available accounting data reveals that Salaries and Wages showed a 9.6% negative variance over the budgeted amount and Payroll Costs also showed a negative variance of 9.6%. While Salaries and Wages are basically the amount of money paid to employees and are self explanatory, it must be mentioned that Payroll Costs essentially consist of employers’ contribution to social security and other statutory expenditures incurred by an employer in connection with employing a personnel. These variances, though noteworthy, can, however, be explained. One must remember there is a genuine dearth of good manpower in the area of operation of our company and the management must be prepared to pay high remuneration packages if they are intent upon selecting the best that is available in the market. So, an increase in Salaries and Wages and Salaries is bound to happen if the company wishes to remain competitive. The increase in Payroll Costs by almost an equal percentage is obvious as these are statutory liabilities that are bound to increase if Salaries and Wages increase. The main variance, however, lies in Recruitment Costs which is a massive 82% over what had been budgeted. This surely needs some serious analysis. Employee Training and Development Costs The foundation of any organization is talented and hardworking people who are the principal assets of any firm, especially one that is involved in providing consultancy services. It is an established fact that the growth of an organization requires continual infusion of quality staff and an organization can achieve its objectives only when it has the right person in right positions (Carlson, Connerley and Mecham 2002). But this is a continuous process that just does not begin and end with getting hold of suitable people and somehow put them on company’s payroll. Even in a situation where only a single job vacancy might attract a few hundreds of applications, there is a challenge of selecting the most appropriate one. Freshly appointed persons might need orientation training to familiarize them of the way things are done in the organization. And, in case they have been selected only on the basis of academic qualifications and aptitude for learning, they might need training in specific skills as well. The employee’s experiences during orientation and placement form their ‘first impression’ of the organization. So, any organization, especially a service provider like us that is so very much dependent on the quality of human resources available at our disposal we should be extra cautious about ensuring that the new recruits get a very good “first impression’ about our organization. This would motivate employees and who does not know that a motivated employee is the costliest resource that an organization can ever possess. However, training and development is never restricted to new employees. Even existing employees, whilst on job, need training for up-gradation of knowledge and skills and for preparing for higher responsibilities. One should never lose sight of the acutely competitive market where we operate.