The true cost of IT field service labor
Think 1099 contractors are more expensive than W2 employees?
100% utilization isn’t realistic for a W2. Even if you achieve 80% utilization, that doesn’t mean every single one of thouse hours is chargeable. 1099s on the other hand are 100% utilized because you’re only paying when you need them.
With a W2, you pay them for every minute they’re behind a windshield or on an airplane – and usually not billing the client for it. Independent contractors generally build travel costs into their hourly rate.
On top of a W2’s base salary, there’s a ~30% cost burden for benefits, plus overtime pay, plus mileage, plus availability pay, plus tools and training, and so on. The hourly rate of a 1099 is already fully burdened.
Where did we get our numbers? From the 50+ years of combined field services experience of Jeff Novotny, Director of Network Development at Field Nation and Shawn Fields, Sr. Field Services Strategist at Field Nation. Before joining Field Nation, Jeff spent nearly two decades at CompuCom and several years at Fujitsu. Shawn is a veteran of NCR, CompuCom, Siemens, and General Electric.
Ready to see the per work order savings and annual savings you can realize by shifting some of your non-core work to a 1099 network?