To keep designers and programmers on-site, salary is only about
half the expense.
Employer Overhead Details
The Basic Wage
- This is the easy part for the employer.
Employer SSN Contribution
- The home office worker pays this himself as self employment tax.
- The more valuable the worker is ( greater experience in the field, and people
peak intellectually at middle age) the more expensive the premium - and small
business pays far more than big business per employee.
Health care costs are a major reason high quality talent is let go at middle age -
or simply not hired in the first place, as "overqualified".
The term "overqualified" is used because, legally, it is deemed non-discriminatory,
but it usually means you're too likely to use your health plan.
Computers, Maintenance, Software and Updates
- Designers, especially, need high-end computers and thousands of dollars worth
- Floor space in an office facility
- It varies widely with variables like which town, in-town or outlying areas,
etc but a ballpark figure is - each employee racks up $30 - $50 monthly per square foot he or she occupies.
- "Without the large numbers of employees required to negotiate favorable
insurance deals and affordable financial services, small firms can't compete
head-to-head with large companies for benefits."
- $20 Billion Annually is paid by American business for employee injury claims covered under
workman's comp plans
Law suits are "a whole 'nuther" issue. An employer could be sued in addition.
Needless to say, fraudlent claims are abundant.
- Employer unemployment insurance contribution
- Unless an employee commits an on site murder, better not fire him!
- Paid Leave
- "Most sick leave policies foster a 'use it or lose it' mind-set, and
employees feel entitled to a certain number of sick days."
If you knew you were paid, show or no show, would you come in?
You would really have to love your job. Self employed people know they put in the hours or they don't get paid.
- This costs employers millions per year and can often be caused by unfavorable
conditions in the office environment.
Many people get fed up with bad relations with co-workers and find any excuse to be absent.
This happens all the time.
Employment is highly regulated by the government — the
items above are either required for the employee to operate, human pitfalls or
government mandates. Nonetheless, all are guaranteed outcomes and all constitute
the link for OSHA's 724
page publication on compliance. Even if some of the horror
stories are exaggerated, there's a lot of room for error in 724 pages of rules!
- Certain fields are more suited to outsourcing than others
- - and the internet is one of the best. You can see results from the contractee's
location as easily as from your own.
You, or your project manager can monitor off-site designers
and programmers daily or moment to moment with the same amount of effort.
In on-site design houses staffers are discouraged from leaving
their cubicles to converse with a project manager. Even though thet are
in the same officecomplex they communicated by phone or email and their work
is viewed on the manager's monitor. They should be off-site, saving the
- With outsourcing, there is no wasted time - You pay only for the time the
developers actually need to complete your project.
- EXAMPLE_Farming : A tractor sits idle in
your barn (not consuming) until needed to plow a field or pull
a harvester. A mule must be fed and maintained year round - need him or not.
- Outsourcing reduces the time it takes to get things done.
- Tasks are divided up between people who are experienced with the particular
task requested of them.
- It also reduces the work day for the contractees by eliminating travel time.
- Outsourcing provides your company with a full staff...
- ....of part time "employees" each highly trained, and doing only
what they do best - and only as long as it takes to do it. This produces superior
results as well as savings.