HOW MUCH DOES IT COST?

BRIEF SUMMARY:

1)  On-site employees are expensive; virtual employees are not.

2)  Small business owners with less needs only pay for actual time used, subject to a minimum fee of $200/month

3)  Larger business owners with clerical needs of 10-40 hours per week save 30-35% of the cost of hiring in-house.  That's equivalent to a savings of $12-14,000 per year for each full time (40 hr/wk) employee.

4)  All clients, regardless of size, receive 40 hour per week coverage and availability.

5)  All contracts are month-to-month with no long-term commitment.  This means that your usage of Daybreak services can vary with the ups and downs of your business.

QUICK ANSWER TO "WHAT DO WE CHARGE?"  The QUICK answer is to calculate the total monthly cost of an in-house employee, including all associated payroll taxes and expenses, based on 4.3 weeks per month and subtract about 35%.  That will be your savings.  Using a full time (40 hour per week at $15/hr) employee for an example:

• Out-of-pocket cost of hiring that in-house employee = +/- $3400 per month. 
• Daybreak's monthly fee for comparable productivity = +/- $2400.
• Savings = +/- $1000/month ($12,000/year) per employee.  (See below for the actual calculations)

PROBLEMS WITH HIDDEN COSTS INVOLVED IN HIRING EMPLOYEES:  There are many hidden costs involved in hiring employees — whether full-time or part-time. In addition to the actual hourly rate, employers also pay for the following:

• Assorted state and federal payroll taxes,
• Health insurance
• Workers' Compensation
• Unemployment taxes
• Benefit time (sick time, vacations, personal time, etc).
• Cost to replace an absent employee
• Cost of payroll/paycheck services
• Etc.

ANOTHER PROBLEM - NON-PRODUCTIVE TIME:  A 2006 study by AOL and Salary.com indicates "the average worker admits to squandering 1.86 hours per 8-hour workday, not including lunch and scheduled break-time..." (Click here to view the report).  When adding the two paid 15 minute coffee breaks mandated by the government, employers pay approximately 2.4 hours of non-productive time per 8 hour shift which is about 30% of scheduled work time.  (See below for examples of how employees waste time)

SO WHAT DOES AN EMPLOYEE REALLY COST?   A general rule to determine the actual cost of an employee is to add about 38% to the hourly rate.  In other words, an employee earning $15.00/hr actually costs the employer a little over $20.00/hr - or about $3400 per month!!*  And that's not including the 2.4 hours of non-productive time each day and the myriad risks and hassles associated with being an employer!

THE SOLUTION:  Our pricing is generally about 30-35% less than the cost of hiring in-house staff.

• In the above example, Daybreak's monthly fee to accomplish the same tasks as a typical 40 hour per week clerical employee would be about $2400 per month - resulting in a savings of about $1000 per month or $14,400 per year!!**
   
• If your salary rate is higher than then the $15.00/hr example above, then your savings will increase even more.
   
• Comparable savings apply to part-time employee replacement.

HOW DO EMPLOYEES WASTE PRODUCTIVE TIME?  Activities such as personal internet use, socializing with co-workers, running personal errands while off premise, "spacing out", personal phone calls, arriving late/leaving early, and even applying for other jobs.  Staring blankly at the computer screen was reportedly also quite popular!*** 

Notes:
*  Fees quoted for in-house staff are typical for New York State - they may vary somewhat in other states.
** These Daybreak fees are typical, but will vary depending on the level of services requested and geographic areas. 
***  Source:  AOL/Salary.com study of 2006
- All monthly Salary quotes are based on an average of 4.3 weeks per month