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Please provide any comments or feedback on the proposition below to contact@praefectusconsulting.co.uk

If your company is growing and you are thinking about employing a full-time Head of IT or an IT Director, think twice. How much does it cost your business to employ someone, over and above salary? 15%? 20%? Think again! According to www.techscribe.co.uk, the cost of an employee is between 40% and 100% on top of salary. So a Head of IT costing (say) £50k might in reality cost you between £70k and £100k in total employment costs. Or an IT Director costing £70k will cost your company between £98k and £140k in total.

And from personal experience in Small / Medium Enterprises, you won’t fully utilise the time of a senior person on strategic or managerial work. So you’re paying the right rate for a few days per month, and way over the top for the rest of the time, when they are doing valuable but non-strategic tasks that could be done, probably better, by a good technical person.

Here’s a new proposition:

If you need additional IT resources, hire a good technician for (say) £30k. Total employment costs: £42k to £60k, for 100% of their time. And such a person will be better at the hands-on stuff than most senior people!
Take on Praefectus Consulting to provide you with the strategic input that you need, on a part-time basis. Total cost: well, let’s talk about that. It really depends on what you need. But you’ll only be buying the services that you do need, without paying a senior manager to work most of the time as a technician at an inflated cost.

A worked example:

Traditional model:
Full-time Head of IT: Annual cost £70,000 including 40% overheads.
Proportion of time spent on “senior manager” duties: 25% = 5 days per month = 60 days per year. Total cost of this work: £17,500
Proportion of time spent on “other” work: 75% = 15 days per month = 180 days per year. Total cost of this technical work: £52,500

Alternate model:
Part-time Head of IT at 5 days per month. Total cost: negotiable!. No additional overheads.
Full time Technical resource at £30k salary. Total cost £42,000 including 40% overheads.
Overall, you should see a cost saving.
And even with that, you get 125% of people time, rather than 100% - i.e. an additional 60 days of effort.

Please let me know what you think of this.

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