What Is A Good Labor Cost Percentage?
A good labor cost percentage is one that is in line with industry standards and allows a business to remain profitable while paying fair wages to employees. Generally, labor costs should not exceed 30% of overall revenue. However, this may vary depending on the type of industry, business model, and geographic location. It is important for businesses to monitor and adjust their labor costs regularly to ensure they are achieving a healthy balance between profitability and employee compensation.