Cost of Managing Professional Employees
Category: Business and Money > Consulting
Asked by: ekim2006-ga
List Price: $50.00
29 Mar 2006 14:31 PST
Expires: 31 Mar 2006 12:13 PST
Question ID: 713335
In a company of "white-collar" professionals, what is the average cost of managing an employee, as a percentage of his/her respective salary? Particularly interested in small- and medium-sized businesses, up to 250 employees.
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Re: Cost of Managing Professional Employees
From: frde-ga on 31 Mar 2006 04:00 PST
For fee earners I've always reckoned that you need to bill them out at three times their salary. X for salary X for social security, office space, kit, expenses, insurance, admin X for bothering to employ them in the first place It depends on the industry, and what they are doing, but my 'feeling' for the subject is that it is hard to directly manage more than 10 people without setting up an intermediate structure. It depends on the industry - a contracting organization can run on 2x - or less if it is high volume, since there is little feedback ie: it is top to bottom communication
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