True Employee Costs Breakdown Table – Internet Marketing Inhouse Team:

When business owners decide to build an inhouse full time team to do their internet marketing instead of outsourcing it, they have to understand the costs of doing that.

Most business owners severely underestimate  all the costs associated with building a full time inhouse team, especially, the employee costs. Inorder to estimate true employee costs, you must consider several hidden costs that often escape the calculation of business owners.

Let’s take a look at this table below. It gives a breakdown of the true costs of employees per hour when you consider all of the non-salary costs (benefits).


Private Industry Employer Compensation Costs

U.S. Department of Labor’s Bureau of Labor Statistics

Employer Cost Cost per Hour % of Total Costs
Wages and Salaries $18.32 70%
Paid Leave Benefits # 1.77 7%
Supplemental Pay 0.78 3%
Insurance Benefits 1.97 8%
Retirement and Savings 0.88 3%
Legally Required Benefits * 2.21 9%
Total $25.93 100%

Paid leave benefits includes vacations, holidays, sick leave, and other leave. Legally required benefits include Social Security, Medicare, unemployment insurance, and workers’ compensation.

This is without including all the other costs that are mentioned here :

23 Employee Expenses – True Cost Of Employees In Internet Marketing


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