It's been a slow week in terms of customer service news. There's an interesting article in the Wall Street Journal that explains the cost to companies of hiring workers, and the news is not good for companies that do not pay low level employees to answer customer service question. Many companies are refusing to hire more employees during these hard economic times due to the cost involved. The article explains that to put $44,000 in an employee's pocket means paying a salary of $59,000, however the cost of the salary to that company is actually $74,000. However, due to the new taxes involved with the national healthcare system, those costs are going to increase by 33% next year.
Here's the breakdown:
Costs To Employee "Sally":
SALLY'S SALARY: $59,000
LESS:
Sally's share of health/dental: $2.376
State unemployment insurance: $126
Disability insurance: $149
Medicare: $856
State income taxes: $1,893
Federal income taxes: $6,500
Social Security: $3,661
NET TO SALLY: $44,000
Costs To Company:
SALLY'S SALARY: $59,000
PLUS:
Company's share of health/dental: $9,561
Life and other insurance: $153
Federal unemployment insurance: $56
Disability insurance: $149
Worker's Comp: $300
State unemployment insurance: $505
Medicare: $856
Social Security: $3,661
NET COST TO COMPANY: $74,000
The bottom line is simple, if a company is faced with the notion of hiring an entry level customer service representative, or not hiring one, most companies will lean towards not hiring one because of the costs involved. That's not good for those of us looking to decrease wait times and have more problems solved over the phone.
For more on the Wall Street Journal Article
Click here.
Posted by GetHuman on Thu, 12 Aug 2010 1:49pm