Money, Money, Money, that’s probably the first thing you think of when it comes to your business.
The biggest question as a business is, “what are some of the key areas we are spending money on that we shouldn’t?”
Whether your business is small or big, hiring new personnel that’s qualified puts a strain on your business’ finances.
You are probably wondering how you can cut your payroll costs?
The real cost
Typically, you’d think that hiring a person just means getting them a space they can work in and that’s it.
Hiring someone goes beyond sourcing their salary. Statistics show that the added annual cost for a new position can equal up to, or more than 150% of the actual pay. By adding a position at an annual salary of $36,000, the “real” cost to the business could be in the $54,000 range.
A survey by glassdoor indicates that US companies spend $4000 on hiring a new employee alone. This includes the hiring process and the procurement of equipment the employee will use. For a small business this is not sustainable.
Insourcing to Africa allows your business to have their work done in an efficient manner at a lower cost. The option to add a Virtual Team to your business can reduce this by as much as 75%.
There are tangible and intangible implications of hiring internally, which are often misconstrued.
Payroll costs also include:
- Salary or Hourly rate
- Health insurance
- Workman’s Compensation Insurance
- Retirement account
- Office or workspace
- Computer
- Software
- Training
Finding an Insourcing partner is key to saving a chunk on your payroll. This allows you to have a great and dedicated Virtual Team that is not only affordable but is professional. However, insourcing from a location such as Zimbabwe can lower your payroll costs by up to 75%! Now that’s a bargain.
Read More: A Definitive Guide To Outsourcing to Africa
Global BP Solutions is a leading Texas-based outsourcing company that provides virtual assistants and administrative support for businesses. Moreover, we provide both short and long term virtual outsourcing services customized to suit your business process needs.