Nearly 40% of restaurant owners underestimate their true labor costs during employee probation periods. The hidden expenses go far beyond base salary - training time, reduced productivity, and administrative overhead can inflate your first-month costs by 30% or more. Understanding these real numbers prevents cashflow surprises and helps you budget accurately.
What does an employee on probation really cost you?
An employee costs you more than just the gross salary. During probation, additional costs come into play such as training, reduced productivity, and administration.
💡 Example:
Chef on probation, €2,400 gross per month:
- Gross salary: €2,400
- Employer contributions (25%): €600
- Training and supervision: €300
- Reduced productivity (20%): €480
Total labor cost first month: €3,780
The hidden costs of probation
During probation there are additional cost items that you often don't see directly but do impact your results. This is the kind of thing you only learn after closing your first month at a loss.
- Training and supervision: Senior staff spend time explaining and checking work
- Reduced speed: New employees work 20-40% slower
- More mistakes: Wrong portions, waste, rework
- Administration: Contract, scheduling, evaluations
⚠️ Note:
For new kitchen staff, plan for 30% extra time for the same tasks in the first month. This typically improves to 10% in month 2 and 5% in month 3.
Calculating employer contributions
On top of the gross salary you pay various employer contributions as an employer. In the Netherlands this amounts to approximately 25% of the gross salary.
💡 Example employer contributions:
At €2,400 gross per month:
- Employer pension contribution: €120 (5%)
- Unemployment insurance: €67 (2.8%)
- Work disability insurance: €168 (7%)
- Health insurance contribution: €206 (8.6%)
- Other costs: €39 (1.6%)
Total: €600 per month (25%)
Impact on your labor cost percentage
Labor costs in hospitality typically range between 25-35% of revenue. During probation periods this can temporarily be higher due to extra costs and lower productivity.
- Normal productivity: 30% labor costs
- With new employee: 32-35% labor costs
- With many new people: Can rise to 40%
Planning and cashflow
Plan these extra costs into your cashflow. New employees cost more in their first 3 months than they produce. Budget for an investment of €1,000-2,000 per new employee before they become fully productive.
💡 Cashflow calculation example:
New chef, €2,400 gross, 3 months probation:
- Month 1: €3,780 costs, €2,500 value = -€1,280
- Month 2: €3,300 costs, €2,800 value = -€500
- Month 3: €3,150 costs, €2,950 value = -€200
Total investment first 3 months: €1,980
How do you calculate labor costs during probation? (step by step)
Calculate total wage costs
Add the gross salary to the employer contributions (approximately 25% of gross). For €2,400 gross this becomes €2,400 + €600 = €3,000 per month.
Calculate the extra probation costs
Add training, supervision, and productivity loss. Plan for 20-30% extra costs in the first month, declining to 5% in month 3.
Plan the cashflow impact
Calculate how much extra this costs per month and plan it into your cashflow. New employees cost more in their first 3 months than they produce.
✨ Pro tip
Track your actual training hours for the first 90 days of each new hire - most owners underestimate by 40%. Use this data to build a realistic €500-800 training buffer into your next hire's budget.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
How much extra does an employee on probation cost?
In the first month approximately 25-30% extra due to training and lower productivity. This drops to 10% in month 2 and 5% in month 3.
Should I include vacation pay in probation costs?
Yes, vacation pay (8% of gross) accrues from day 1, even during probation. This is often already included in the 25% employer contributions.
What if the employee leaves during probation?
Then you lose the investment in training. Always factor in the risk that 20-30% of new employees leave within 3 months.
How long does it take for a new chef to become fully productive?
On average 3-4 months. In month 1 they work 30% slower, in month 2 still 15% slower, after that they're usually up to speed.
Can I deduct the extra costs somewhere?
Training costs are deductible as business expenses. But reduced productivity and extra time are simply part of your labor costs.
Do probation wages count toward overtime calculations?
Yes, probation employees earn overtime at the same rates as regular staff. Their base hourly rate for overtime calculations uses their probationary wage, not any future increase.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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