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True Cost of Employment

I saw an interesting article on LinkedIn recently highlighting the true cost of employment. The detailed analysis, published by a well-known international “outsourcing” consultant was presented in the form of a calculator. It was interesting to see that the hourly rate of an employee earning £30k per annum was calculated at £27. This did not include Company Car Allowance or employer’s responsibilities such as Maternity Leave, Sick Pay or Redundancy. Given the publishers position the report naturally promoted the benefits of outsourcing where for similar rates the employer purchases support as and when the need to and crucially without the cost of responsibilities. The arguments for outsourcing versus employment are well versed and whilst it may not work in every circumstance it remains financially beneficial and as part of a strategic partnership will positively impact the bottom line. Please contact me direct should you require a copy of the calculator; david.ascott@design-base.co.uk


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