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True Cost of Employing vs Cost Out Solution

True Cost of Employing vs Cost Out Solution

Optimising capital is a key challenge for businesses. How do you scale effectively (and sustainably) without accruing astronomical staffing costs? Here, we take a look at the employment costs for non-core business functions and the true impact on an organisation’s bottom line.

It’s a complex picture. Take a salary of just under £40,000. Add on NI, employer pension contributions and the cost of unproductive time, and the real cost of that salary will rise to over £50,000. For a basic salary of £53,000, the real cost will be in excess of £70,000.

But that’s only part of the picture. What about all the ancillary costs associated with hiring and supporting a full time employee? There’s equipment, floor space, and heating & lighting to consider; not to mention the cost of recruiting, onboarding, training and managing of the individual.

Cost Out Infographic part 1


And if your original hire doesn’t work out? It can be difficult and expensive to terminate their employment, often leading to a toxic work environment and lower employee morale. You’ll also have to repeat the recruitment and onboarding process, adding yet more to the cost per head of a non-core employee.

In short, while direct hiring has its advantages, there are likely to be many hidden costs and pitfalls along the way. With the right partner, outsourcing some or all of your business support capabilities will deliver greater reliability, consistency and insight while giving your organisation increased control and transparency over their costs.


Cost Out Infographic-03-1


About SmartPA

SmartPA is a pioneer of remote, outsourced admin and business support, providing individual SmartPAs, multi-skilled cross-functional teams, and full lift and drop admin process outsourcing. Working with more than 5,000 businesses of all sizes world-wide, SmartPA draws on a global talent pool of accredited SmartPAs, with a Centre of Excellence based in the UK, near shore hubs in South Africa and Uganda, and an offshore hub in Malaysia.

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