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. Contact us today