COST SAVINGS
(Employees are expensive!)

ONE PROBLEM: 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!

THE SOLUTION:  Our pricing is generally about 40% 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 $2200 per month - resulting in a savings of about $1200 per month!!**
   
• 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. 
***  Source:  AOL/Salary.com study of 2006
- All monthly Salary quotes are based on an average of 4.3 weeks per month