I don't know what their hourly charge-out rates are, but let's say, for argument's sake, that the figure is £100/hr. That's a cool £54M per year on CAD production alone.
Now let's picture the impact of a 2% improvement in productivity across the year - that's over £1M in savings, or half a million quid for every 1% increase!
Suddenly, spending a few grand on testing and training tools starts to make a lot of business sense!
Let's look at some more numbers;
Take an average salary of £25k p.a. and a 225 day working year.
For every 1% improvement in productivity, a practice will save £250 or 2.25 days per person per year. Targeting a 5% annual improvement in performance, this is worth £1,250 or 11.25 days per person per year. (11.25 days = 90 working hours (average 8 hour work day)).
For a firm with 20 staff, this is worth the equivalent of a new member of staff! (20 x £1,250 = £25,000).
Now let's look at hiring; how much does it cost to employ inappropriate personnel for 3 months?
Assuming a £25k annual salary:
15% agency fee = £3,750
3 months’ salary = £6,250
Assuming £18/hr:
7.5 hrs x 5 days = £675 x 12 weeks = £8,100
These examples don’t include advertising costs for staff employed direct, or the cost of re-working for drawings which weren’t done right first time.
R
Posts
