The following presents the cost effectiveness of using flexible staffing. This format illustrates a client's savings based on national averages of employment costs.

 

Instructions: Fill in Pay Rate, Bill Rate and Employee Projected. The rest will be calculated automatically.

 

Administrative/Clerical Sample Cost Analysis

Cost Factors Pay Rate Bill Rate
Basic Hourly Rate $ $
Legally Required Tax Payments (Employer's Share Only):

Social Security, Medicare, State and Federal Unemployment tax, Workers' Compensation (based on national average of 17.3%).

FICA= 7.65%; FUTA = 0.80%; Average SUI = 4.10%; Worker's Comp. = 4.75%

$2.51 $0
Fringe Benefit Payments:

Holiday and vacation pay, sick leave, personal leave, insurance, bonuses, 401(k), etc. (based on national average of 30.4%).

National Average obtained from DOL Bureau of Labor Statistics 2010

$4.41 $0
Recruiting/Hiring Costs:

Advertising, testing, reference checking, interviewing, hiring, administrative, training. (based on national average of 12.0%).

National Average obtained from Staffing.Org Library Article 02/04/2010

$1.74 $0
Training/Orientation:

Tutorials, training, orientation, skill testing (based on national average of 13.0%).

National Average obtained from Staffing.Org Library Article Measuring What Matters 01/21/2010

$1.89 $0
Cost of Termination:

Unemployment claim administration, severance pay (based on national average of 2%).

National Average based on DOL Bureau of Labor Statistics 2003

$0.29 $0
Administrative Costs:

Payroll processing, W-2, W-4, I-9, Hiring packet, etc. (based on national average of 13%)

National average based on staffing industry's average costs

$1.89 $0
Salary Increases:

Annual salary increases (based on national average of 2.1%)

National Average Based on bls.gov news release 04/30/10

$0.30 $0
TOTAL: $27.52 $19.50
TOTAL SAVINGS (per hour): $8.02

The cost savings example for each employee is:

$8.02 per hour

Monthly cost savings for each employee (173.33 hours) of:

$1,390.28 per month

Annual cost savings for each employee of:

$16,683.36 per year

Enter amount of employees projected:

Utilizing 1 employee represents a grand total annual savings of:

$16,683.36

Note: Additional cost factors can include: legal expenses, absenteeism, non-productive time, downtime, and employee replacements. These factors vary based on client circumstances, but contribute to workforce-related costs.