Cost Analysis for Effective HR Strategies in Youth Volleyball

Success in youth volleyball clubs is a multi-faceted endeavor. While athlete performance is paramount, the role of a strong management team cannot be overstated. Effective HR strategies are critical to this equation. In a previous blog post, we discussed foundational HR elements like recruiting, training, and retaining the right team. Today, we focus on the financial metrics that underpin these HR decisions, particularly the cost per hour per program and its subsequent impact on employee compensation.

A Realistic Approach to Calculating Program Costs

Understanding the cost per hour per program is the cornerstone of a sustainable HR strategy. Let’s consider a more detailed example to illustrate this:

Suppose your court space is 1,800 square feet, with an annual cost of $18,000, which translates to $10 per square foot. If your court is available 250 days a year (excluding weekends and some holidays), the daily court cost would be $72. To make this example more realistic, let’s add an extra $28 for utilities and staff members needed to open and close the court, bringing us to an even $100 per day.

The Importance of Being Conservative

The challenge lies in accurately estimating how many hours per year you can realistically use the court. It’s better to be conservative than overly optimistic. If you believe you can consistently book the court for an average of 5 hours per day, your per-hour rate would be $20. However, if you think a more realistic booking is 2.5 hours per day, your rate would be $40 per hour. My experience suggests that a conservative approach is usually the safest bet.

Translating Program Costs into Employee Compensation

Once you’ve determined a realistic cost per hour per program, you can calculate the cost per hour per employee. This calculation involves dividing the total annual cost for an employee, including salary, benefits, taxes, and other fees, by the total number of hours they work in a year. Here, too, it’s crucial to be realistic and conservative in your calculations to ensure financial sustainability.

Aligning Program Costs with Employee Compensation

Understanding the cost per hour per program is vital for setting competitive yet sustainable employee compensation packages. For instance, if the volleyball program costs $20 per hour to run and you have two coaches who collectively cost $30 per hour, you’ll need to ensure that the fees charged to participants cover these costs, along with other operational expenses.
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