Most of those expenses are mitigated by the fact that companies buy them in bulk on huge plans. As a freelance contractor myself, I pay a lot more for insurance than I did when I worked for a company. And a retirement plan? Lol.
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dan@upvote.au 22 hours agoThere’s a lot of other expenses with an employee (like payroll taxes, benefits, retirement plans, health plan if they’re in the USA, etc), but you could find a self-employed freelancer for example.
Or just get an employee anyways because you’ll still likely have a positive ROI. A good developer will take your abstract list of vague requirements and produce something useful and maintainable.
floo@retrolemmy.com 22 hours ago
partial_accumen@lemmy.world 22 hours ago
Most of those expenses are mitigated by the fact that companies buy them in bulk on huge plans.
There’s no bulk rate on payroll taxes or retirement benefits (pensions or employer 401k match). There can be some discounts on health insurance, but is not very much and those are at orders of magnitude. So company with 500 employees will pay the same rates as 900. You get partial discounts if you have something like 10,000 employees.
If you’re earning $100k gross as an employee, your employer is spending $125k to $140k for their total costs (your $100k gross pay is included in that number).
floo@retrolemmy.com 21 hours ago
Large companies also make massive profits because of the scale they work on. Matching 401(k) contributions? It doesn’t need to be an order of magnitude larger for it to make a huge difference. Simply doubling my 401(k) is a big deal.
And of course they get a “ball rate“ on payroll taxes, especially for companies who have over 1000 employees or over 5000 over 10,000. They experienced this by having a lower tax rate for larger businesses.
Businesses, particularly word businesses, operate on much larger profit margins than most of any freelance contractor.
panda_abyss@lemmy.ca 13 hours ago
They could hire on a contractor and eschew all those costs.
I’ve done contract work before, this seems a good fit (defined problem plus budget, unknown timeline, clear requirements)
dan@upvote.au 10 hours ago
That’s what I meant by hiring a self-employed freelancer. I don’t know a lot about contracting so maybe I used the wrong phrase.
Deestan@lemmy.world 14 hours ago
These comparisons assume equal capability, which I find troubling.
Like, a person who doesn’t understand singing nor are able to learn it can not perform adequately in a musical. It doesn’t matter if they are cheaper.
TheReturnOfPEB@reddthat.com 21 hours ago
the employee also gets to eat and have a place to live