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Re: not enough real programmers? (was Re: Byte Magazine: 18 Vintage issues, 1985-1986)



On Thu, 05 Aug 1999 16:07:03 +1200, brucehoult@pobox.com (Bruce Hoult)
wrote:

>
>Actually, I wasn't aware that I was cheaper -- I asked for a lot to make
>up for travel expenses, living in a hotel, and being away from my family
>for a couple of months, and they paid it.
>

You were a "temp" - real employees require things like health
insurance and paid vacation/holiday.  Then the government steps in at
several levels to require various paperwork in triplicate and tax
related bookkeeping - a large portion of which is not required for
temporary help.

Harvard Business School did a study a couple of years ago on the cost
of hiring for a small business (< 50 employees).  Depending on the
locale, they concluded that the true cost of hiring an employee was
1.6 - 2.9 times the person's stated salary.

The cost per employee shrinks as the size of the company increases
because managing government interference becomes a smaller portion of
the business activity - full-time bookkeeping departments scale fairly
well.


The hidden costs are why companies here are importing.  Temps don't
need benefits or paperwork and full-time immigrant help can often
still be paid less than a local.


George Neuner
Dynamic Resolutions, Inc.
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The opinions expressed herein are my own and do not
reflect the opinions or policies of my employer.
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