By, Ashley Luczaj, Operational Excellence Manager
Business leaders know operating costs keep escalating in virtually every expense category. Whether it’s taxes, healthcare costs, new and existing compliance requirements, insurance, or fuel, running a business in the logistics industry involves an ever-tightening of operating margins. Leaders are always looking for ways to reduce expenses without impacting quality for customers. To that end, let’s take a look at what $16.50 can buy in 2017:
We looked at what $16.50 can buy because it happens to be the hourly rate Vantage Agora charges for a remote staffing person to complete the processes taking place in your office by hourly staffers and seasonal temporary staff.
Depending on where you are located will determine the cost of labor. If your business is located in a major urban area or along either coast the cost of hourly workers may well exceed $16.50 per hour. If you’re located in a more affordable part of the United States, your cost of labor may be in the $12 to $14 per hour range.
Regardless if the hourly labor costs are less than $16.50 per hour where you are located, a breakdown of the associated actual labor costs, including taxes, benefits, etc. will certainly exceed $16.50 per hour. In most states where certain overhead expenses are common, employers are responsible for far more than the simple hourly rate. For example, a chief financial officer recently wrote to Vantage Agora to explain the cost savings in using our remote staff to complete their processes. The breakdown is as follows:
As this financial breakdown shows, a company paying an employee $16.50 per hour has a fully loaded expense of $27.70 per hour. That’s an additional $11.20 per hour per employee in extra costs above their hourly rate!
Most quick calculations for employee costs simply take the hourly rate and multiply it by 2,000 hours if paid time off is not offered or 2,080 hours if paid time off is available. By the simple math, one might expect an employee making $16.50 per hour makes between $33,000 and $34,320. However, as the chart above shows, the actual annual cost to the employer exceeds $56,000 per employee per year.
For the moving and storage industry, hiring seasonal staff from a temporary staffing firm drops the labor cost by $4.88 bringing the fully loaded hourly cost to $22.82. Working with Vantage Agora, your seasonal staffing model works remotely and maintains the hourly cost of $16.50 per hour. Our hourly rate includes all the employee benefits, plus rent, supervision, training, IT equipment, office supplied and furniture, etc.
Call Vantage Agora at 216.816.9900 or email us to find out how the Vantage Agora remote staffing model can save your company tens of thousands of dollars in staffing costs.