Labor Costs Are Increasing

In the news you find reports that labor costs are increasing. Some states like New York and California are raising the minimum wage to $15.00/hour in the next 1-2 years. What is this going to mean for business owners? It means that business owners are finding other ways to reduce their labor costs.

Recently in the fast food industry – chains like McDonalds & Wendy’s are looking to self-service kiosks to eliminate the order takers. We have already seen large retail chains like Target and others reduce the hours of workers to part time to avoid paying insurance benefits.

The labor costs in the US are crushing small business owners. Not only that, but finding quality workers even at $15.00/hour is difficult. One of our clients was looking to hire a receptionist – paying $60,000 per year plus benefits and could not find a single worker who could make the cut. Another client needed a customer service person to cover the night shift and wasn’t able to find the right person for the job.

We were able to find both of those clients a cost-effective solution. We helped them hire a virtual employee from the Philippines. We helped them hire & train their newest workers and saved them a fortune.

Let’s break down the cost savings for you. This is an actual client’s saving on a full time customer service staff member:

US Employee                           VE

Staff Cost:                              $30,000.00                                                   $13,440.00

Placement                             $600.00                                                         $995.00
(Ad, resume eval,
interview time
Testing, screening)

Benefits – PTO
(Vacation, holidays)            $1,150.00                                                       Included in above
Employer Paid Taxes
SSI Tax                                   $1,860.00                                                      $0.00
Medicare                               $435.00
State Unemployment          $256.50
Federal Unemployment      $231.00

Workman’s Comp                $300.00                                                         $0.00
Health Insurance                 $3,000.00                                                     $0.00
Employer Contribution

Technology/Support           $1,800.00                                                      $0.00
Computers, software
Maintenance, upkeep

Real Estate                            $1569.00                                                       $0.00
Cubicle = 110 sq ft
Average rent $1.18 per sq ft

TOTAL COST:                       $41,201.50                                                     $14,435.00

These results are typical for most of our clients. We save them on average $26,769.50 per year.  This is HUGE for most business owners.

We specialize in full time staff for general administration, sales support, & customer service. If it can be done with a computer & phone – we can find the staff to help you.

One of the biggest concerns we get is – “That’s great, but how is their English?” We encourage you to check it out for yourself – to hear how an average Filipino speaks quality English.

How can we help you reduce your staff expenses & increase your customer service? Contact us today for a free consultation or call 678.389.9929.

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