The TRUE Cost of your Accounts Staff

There are many indirect costs involved with keeping staff in house. As a general rule, take an employee’s base salary and add 50% to find the true cost of employment. Sounds ridiculous, right? Well, not when you consider:

  • Superannuation
  • Annual Leave and Sick Leave
  • Public Holidays
  • Workers Compensation
  • Payroll Tax
  • Recruitment Fees
  • Training
  • Office Space
  • Computers and other equipment
  • Software user licenses

Also consider the costs involved when the inevitable happens and an employee either resigns or is terminated. At this stage, there are another group of hidden costs:

  • New hire ramp up time
  • Orientation hours required by senior staff
  • Advertising/recruitment costs
  • Interviewing time
  • Lost productivity during training

So how does outsourcing come into the equation? Outsourcing adds some flexibility to your business by removing the bulk of the indirect costs associated as well as completely avoiding costs associated with termination of staff. This means you get much more for your money, plus you end up paying less too!

It isn’t uncommon to save 30-50% of an employee’s annual cost by outsourcing their work, whilst generally achieving more efficiency at the same time!