|
Let’s assume you’re looking to implement a new accounting system. You have two
choices
for the implementation; hire a new employee or hire a consultant.
|
Consulting
Savings Calculation |
| |
Employee |
Consultant |
| Hourly pay rate |
$25.00 |
$120.00 |
| Fringe benefits |
$08.75 |
$0.00 |
| Overhead rate* |
$12.50 |
$0.00 |
| Total effective pay rate |
$46.25 |
$120 |
|
Hours per
year |
2080 |
400 |
|
Total Annual
Cost |
$96,200.00 |
$48,000.00 |
|
|
*
Overhead rate include the cost of training personnel. |
Surprised. A saving of $48,200
annually is common on top of added value, reliability,
limited cost of turnover
and increased productivity. Feel free to modify the numbers
in the spreadsheet
above to reflect your company's own rates.
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