Your staff costs more than you realise20th October 2017
I don’t suppose we’ll ever know how much money we’ve saved for our clients over the years.
With so many hidden efficiency savings, and so many mistakes we’ve helped them avoid , it’s impossible even to make a realistic estimate.
But one thing I do know. The very act of outsourcing their financial management to us rather than hiring a staff member to do the job internally has saved them tens of thousands.
The fact is that hiring a new employee is a very expensive business – much more expensive than most employers realise, because many of the costs are hidden.
The headline salary is just the start of it. There’s National Insurance, pension obligations, payroll administration, and on top of all that you’ve got the recruitment costs – advertising and agency fees, as well as the time invested by you and/or others in the company.
Then you have to supply a computer, desk, and no doubt a string of benefits – starting with free coffee and going up to private healthcare and more.
In fact, the cost of employing the average employee is double their headline salary.
And that’s before you've started factoring in some of the even more hidden costs. It’s estimated that it takes an average of 23 weeks before a new employee gets up to full speed – and much longer for complex roles. Of course during that time existing staff actually see their workload increase, as they support the new arrival.
Remember, you still have to pay your employees when they’re not being productive. Perhaps because the business is having a slack month, or because the employee’s on holiday, at home sick, or wasting time at work (which everyone does…. Employees are only human).
Outsourcers are only human too, but because you're buying access to a whole team, sick leave and all the other benefits don’t come into it.
Once the deliverables are all set out in the contract, there’s nothing for you to worry about – the costs are straightforward and predictable. And very often, it comes out cheaper.
So don’t be in a rush to hire every time you need an essential function filled. Think carefully about whether outsourcing will be more cost-effective for you.
And if you are growing and need to professionalise your financial management, consider outsourcing to us.
As I said before, hiring one person means that you only get one person’s skills, instead of the skills, processes and technology that a whole team brings when you outsource to us.
You will probably pay a lot more for that one person, than you will for our full team. And we will be able to give you truly world-class financial management – so you get the kind of planning, budgeting, financial analysis and advice that every large company takes for granted, even when you’re not really “large” quite yet.
If that’s something you’d like to see, let’s chat about how we can help you