Cost-Benefit Analysis of Partnering with Voyage

Risk Mitigation
0 %
Cost Saving
$ 0

Background

In this case study, we analyze the employment and administrative costs incurred by a client before they partnered with Voyage. The client employed 50 full-time employees and occasionally hired additional staff throughout the year. The data provided reflects a one-year period. 

Before Partnership with Voyage

  • HR Manager Salary + Payroll Taxes
    • Base Salary: $65,000
    • Payroll Taxes (15%): $9,035
    • Total HR Manager Cost: $74,035
  • Marketing Expenses (Indeed or Similar Platforms/Job Fairs)
    • Estimated Marketing Expense: $10,000
  • Payroll Systems
    • Annual Payroll System Cost: $4,200
  • Time Clock Systems
    • Estimated Time Clock System Cost: $2,000
  • Workers’ Compensation Policy
    • Estimated Workers’ Comp Policy/Premium Cost: $150,000
  • General Liability Insurance
    • Estimated General Liability Insurance Cost: $68,750
  • Workers’ Compensation Claims
    • Estimated Workers’ Comp Claims Cost: $12,500
  • Employment Lawsuits
    • Estimated Employment Lawsuits Cost: $30,000
  • Turnover Costs
    • Estimated Turnover Cost: $25,000
  • Payroll & Taxes Calculation
    • Hourly Wage: $17 per hour
    • Payroll Tax Rate: 15%
    • Total Payroll Cost for 50 Employees: $2,033,200
  • Healthcare Insurance (50% Employer Match)
    • Total Healthcare Insurance Cost for 50 Employees: $162,500
  • California Sick Leave (Including Payroll Taxes)
    • Total Sick Pay for 50 Employees: $39,100
  • Total Cost Before Partnering with Voyage: $2,611,285 per year

After Partnership with Voyage

  • After partnering with Voyage, the client was able to reduce their costs significantly. Using an average markup of 35%, Voyage provided comprehensive coverage for all the expenses listed above at a reduced rate:
  • Hourly Rate with Voyage: $22.95 per hour (35% markup on $17 per hour)
  • Total Cost with Voyage (50 Employees): $2,386,800 per year
  • This results in a cost saving of $224,485 per year.

Benefits of Partnering with Voyage

Voyage covers all costs associated with managing HR functions, payroll, insurance, workers’ compensation, and more. By partnering with Voyage, the client not only achieves cost savings but also mitigates risks and simplifies expense forecasting, leading to better profitability. 

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