Don't Just Say 'Labour Costs' Anymore – Here's What the Experts Say

Have you ever been in a meeting, wanting to discuss 'human resources costs' or 'staffing expenditure' with international colleagues or your boss, only to find yourself at a loss for words?

Several terms flashed through your mind: labor costs, personnel costs, hiring costs... Which one is correct? They all seemed somewhat right, yet not quite. In the end, you could only vaguely say, "our people cost is too high," which sounded unprofessional and failed to pinpoint the core of the problem.

It's like going to the doctor and just saying "I don't feel well," without being able to specify whether it's a headache, fever, or stomach ache. The doctor can't give you an accurate diagnosis, and you can't solve the real problem.

Today, let's approach this differently. Stop memorising "human resources costs" as a single phrase; instead, view it as a 'corporate health check-up'.

Be Your Own "Business Doctor" – Accurately Diagnose Cost Issues

A good business communicator is like an experienced doctor. They don't use vague terms like "sick"; instead, they provide a precise diagnosis: Is it a viral infection or a bacterial one?

Similarly, when discussing costs, experts won't just say "human resources costs are too high"; they'll precisely pinpoint the issue.

Before you speak next time, ask yourself three questions:

Are we discussing the cost of "doing the work"? (Salaries and bonuses paid to employees)
Are we discussing the cost of "maintaining staff"? (All expenses beyond salaries, including benefits, insurance, training, etc.)
Are we discussing the cost of "finding people"? (Expenses incurred when recruiting new employees)

Once you've clarified these questions, the correct English expression will naturally emerge.

Your "Diagnostic Toolkit": Three Core Terms

Let's look at the most important diagnostic tools in your "medical toolkit".

1. Labour Costs: Diagnosing "Labour" Itself

This is like taking a patient's "temperature". Labour Costs primarily refer to the direct expenses paid in exchange for an employee's "labour", which typically means wages, salaries, and bonuses. It's directly linked to production and workload.

Use Case: This term is most accurate when discussing production line hours or project team input-output ratios.
Example: "By optimising the assembly line, we successfully reduced our labour costs by 15%." (Through optimising the production line, we successfully reduced labour costs by 15%.)

2. Personnel Costs: Diagnosing the Total "Staff" Cost

This is equivalent to giving a company a "full body scan". Personnel Costs are a more comprehensive concept. They not only include labour costs but also cover all indirect expenses related to "people", such as employee benefits, social security contributions, pensions, training fees, and so on.

Use Case: When you're preparing an annual budget, analysing overall operating expenses, or reporting to management, using this term demonstrates your macro perspective.
Example: "Our personnel costs have increased this year due to the new healthcare plan." (Our total personnel costs have risen this year due to the new healthcare plan.)

3. Hiring Costs vs. Recruitment Costs: Diagnosing the "Recruitment" Phase

This is where confusion most often arises, but also where your professionalism can truly shine. Both relate to "finding people", but their focus differs.

Recruitment Costs: This is like the cost of the "diagnostic process". It refers to all expenses incurred to find suitable candidates, such as placing job advertisements, attending career fairs, or fees paid to headhunters.
Hiring Costs: This is more like the cost of the "treatment plan". It refers to the direct costs incurred after deciding to hire someone, but before they officially start, such as background check fees, signing bonuses, or preparation for new employee induction training.

Simply put, Recruitment is the process of "searching", while Hiring is the act of "employing" or "bringing on board".

Example: "We need to control our recruitment costs by using more online channels instead of expensive headhunters." (We need to control our recruitment costs by using more online channels instead of expensive headhunters.)

From "Memorising Words" to "Solving Problems"

You see, the key to the problem has never been about memorising a collection of isolated words, but about understanding the business logic behind each term.

When you can, like a doctor, clearly diagnose, "Our company's problem isn't excessive salaries (labour costs); rather, it's the inefficiency of new staff recruitment, leading to recruitment costs remaining stubbornly high," your input immediately gains weight and insight.

Of course, even the best "doctors" might encounter language barriers when dealing with "patients" (partners) from around the world. When you need to communicate these precise business diagnoses in real-time and clearly with global teams, a good communication tool becomes your "personal interpreter".

Intent, this chat application, features top-tier AI translation capabilities, enabling you to ensure every precise term is perfectly understood by the other party in cross-cultural communication. Whether discussing personnel costs or recruitment costs, it can help you break down language barriers and ensure your professional insights truly resonate.

Next time, don't just worry about "how to say this in English".

First diagnose the problem, then speak. That's the leap in thinking from an ordinary employee to a business elite.