How Nearshore Talent Turns A $72K Hire Into $30K (Part 2) | Remotely+ | Last2First

So we referenced the 70% potentially savings on this.

What goes into that comparison? So I heard you say it's kind of a flat rate, $2,400 for a certain range.

Is it all flat rate or any escalators? Just help me understand what's in that number.

Yeah, it's pretty simple.

I mean, the way I explain it, and I think this is the way Steve explains it too, but let's take that customer service role.

Someone's paying us $2,400 a month, right? That comes out to roughly $30,000 a year, right? Yep.

if they were to go hire that person individually, domestically, they're going to probably pay a salary of 60, depending on where you are in the country and what level of customer service, maybe 65.

But on top of that, you got the burden, right? You got probably 15 or 20% on top of that 60,000 for things like health insurance, for things like workers' comp, for all the other things that employers pay to have a U.S.-based employer.

And then the tax match on top of that.

And then the tax match, right.

All

those come under the burden, like you said.

Yeah, and again, just rough estimates.

If that's another 20% on the 60, you're up to 72.

So 72 versus 30, I don't know if it's going to be exact.

Every position is a little bit different.

But it's well above 50%.

And to Steve's point earlier, what's not calculated in that savings is, What about that turnover when the person you hire here in the States keeps leaving your company, doesn't show up, and then all of a sudden you got to start rehiring, you got to start posting jobs.

Oh, you got to pay on Indeed for another job posting.

You got to take people away from their day-to-day to do interviews, and you got to train again, whatever.

We all know that's a significant cost.

That's not reflected anywhere.

Yeah, not reflected in that 70%.

And then with those turnover numbers that we talked about, which can be astronomical, many of those people, even though you pay part of unemployment insurance, that's one thing.

But when the person leaves your employee and they're hoping that you're going to not fight their unemployment, then there's that whole process too.