5 Staff Leasing Costs that you need to know from VirtualProfessionals
We are in this business for more than 2 years already, and had networked with other professionals in this industry along the way. I think it is just right to give "soon to be clients" a few ideas on how staff leasing companies bill their clients, or at least on our end. I think it pays good to be transparent to your client and it can build trust between parties.
As a small enterprise, we came up with this addition formula:
1. Employee Salary
Yes, you read it right, we are allowing our clients to know how much we are paying our staff. This builds the trust level a notch higher, letting them feel secure that we are not overpricing the service. Also, based on our experience, this helps our client plan the salary increase of their resources as years pass by.
2. Government Mandated Benefits and 13th month pay
This should be mandatory since every employee deserves their government and legal benefits.
3. Operating Expense
Everything that "OUR" employees need in performing their day to day job. Pantry supplies, air-conditioning, office rental, and the likes.
4. Administration Fee and Mark-up
This is a fee to cover the accounting and administration resources and a small amount of profit for the company.
5. Inflation and Forex
For example, we plan to hire Lydia, which is an accountant for 3 years, and we would like to offer her a competitive salary in the Philippines.
Competitive and above market salary : P40,000 to P50,000
this salary is a very attractive rate
Government Benefits : P7,500
Admin Fee: P18,000
Estimated Total: P70,000 to 85,000
Assuming 1 USD = Php50
Monthly fee of $1400 to $1700 per month
Hourly Fee of $8 to $11 per hour
A very affordable price for a fully managed resource! Please note that as a company, we shoulder the events (christmas party, summer outings, etc) cost which helps improve employee motivation and retention. See our events!
More so, some outsourcing companies bill you additional seat and equipment costs, but here in VirtualProfessionals, those are already included for FREE!
Just let us know if you need to clarify a few things in this post!