You read that correctly. One of our clients saved $100,000 in payroll. This client owns a title company. Tired of turnover, he decided to look offshore after learning about the possibility of hiring someone to work virtually from another country (we all wish we knew about this sooner, don’t beat yourself up).
(Let me make a quick side note: What we do isn’t about replacing your current staff with offshore people. You have to make tough decisions as a business owner. Sometimes you simply have to cut overhead in order to have margins that allow you to provide for yourself and your family).
Anyhow, this client (real estate attorney) had four U.S.-based employees in his office, and on average, he was paying them $50,000.00 a year (not including taxes and overhead). Two of his employees gave him notice around the holidays that they were leaving as of January 1st. Not only did he need to replace these two, but he also needed to fill another position for his quickly growing law practice.
We were able to quickly find him two employees, one from the Philippines and one from Mexico, and he paid them just under $20,000 a year each, all-in, with no taxes or withholding (we take care of that pesky annoyance for you). For the position he needed to fill, instead of looking for someone in his market, we found him a third “Staffer” (what we call our employees that work for you because we don’t want them to be treated as your employees for employment law purposes – they work for us and we lease them to you) for the same price. That’s a savings of just over $30,000.00 an employee, times three. Now, suppose you include the taxes, overhead, insurance, bonuses, benefits, equipment, and everything else (real money) that goes into having employees in-house. In that case, that’s a savings of well over $100,000 every year.
We would be remiss, not to mention the time our client saved from placing a local ad, reviewing resumes, doing interviews, rinsing, and repeating until he found someone. What is all that time worth considering time is our most valuable asset? What if one of those employees had quit within the first few months? He would have had to start all over. (We’ve all experienced turnover, and Google is riddled with articles about how and why employees should leave jobs, but none about why they should stay. We recently wrote about why it’s so tough to find incredible talent here). On the other hand, if one of our Staffers quits (they are human, after all, and we’re not perfect either), we go right back to work finding a replacement.
So, what would you do with another $100,000.00 in profit next year? Grow the business? Take a vacation? Stash some for retirement (finally)? All three, we hope?
One final point – we’ll tell you what our client did with the extra $100,000. By saving so much on payroll, our client was able to grow his business and, the following year, hire another local employee. So he created another job in the market, comfortably, that he otherwise might not have been able to. After all, together, we’re helping business owners, the global economy, and the local economy. Just consider by layering your staff matrix with a healthy mix of onshore and offshore employees, you’ll most likely create more jobs in your town than you would have otherwise.
We believe this is a rare win-win-win; it’s tough running a law firm. You need help, but it’s often too expensive and daunting to get there. Not anymore. We’re not stopping until reaching our mission of liberating lawyers with incredible offshore talent. If you’d like to learn more and take the first step towards real freedom as a business owner, we look forward to speaking with you soon.
Want to learn how to save money in payroll? Contact us HERE and subscribe to our mailing list HERE.