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08/25/2010

business finance, career, employee cost, employment, From the Owners, hiring cost, recruiting, Recruiting and Selection Tips, Staffing, Staffing

Up to $10K to Hire Employees Yourself

By: Mark Moore

On the surface, it may seem like your local staffing provider will cost more than hiring additional employees yourself. However, there are many hidden costs that you may not have factored in. To begin, every employee that a business hires has mandatory costs associated with that individual.

Of an employee’s basic wage:

  • 12%+ social security, unemployment insurance and worker's compensation
  • 10% for paid time off (vacation, holidays and sick days)
  • 8% subsidized benefits plan that includes: health insurance, life insurance and 401k contributions
  • 6-7% system to keep accurate records for each person, a way to distribute payroll and insurance in case this employee sexually harasses another

This totals to about 40%: which is the cost above the employee's basic wage.

This is before you have even spent a dime to recruit, train, or retain this person.

Staffing and Recruiting Firms Step In to Help

This is the reason why we are here and relevant. As a business owner myself, I can attest that some of the best resources in my business are outsourced. Outsourcing this work allows me to concentrate on my core business and helps to create partnerships in my local community that will, in turn, help my business to grow. Not one company can survive on its own. This is obvious, but often forgotten.

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