It’s more than just payroll
In the hiring of a new or replacement position, as business owners we fail to compute the added expenses both tangible and intangible. To accurately budget for each new position, we must consider many of the fixed and variable costs we will incur:
- Salary or Hourly rate
- Matching of FICA
- Health insurance
- Workman’s Compensation Insurance
- Retirement account
- Office or workspace
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. The option to add a Virtual Team (VT) to your business can reduce this by as much as 70%. This enables you to minimize or eliminate;
- Annual payroll
- Intangible and Tangible costs
- Office “Drama”
- Difficult employee interactions
Consideration of a Virtual Team member can offer the benefit of a more efficient organization, increased “Horsepower” from your current team by elevating their positions, and a happy, more relaxed work environment.
J.W. Oliver is the founding and managing partner for GlobalBPsolutions.com based in Texas with a BP centre in Africa. They are a Christian based business with a desire to help businesses and ministries to be their very best while helping support people and ministries Globally.