The Tower Group policy on temporary and contracting staff rates is fourfold:
- Maintain affordability to our clients
- Be totally transparent with our fee structure
- Keep the client and temporary worker rates fair and market related
The fee (hourly rate) charged, in respect of temporary & contract staff members, has three components, namely:
- Salary paid to the temporary staff member
- Statutory & fixed costs incurred in maintaining the temporary staff member
- Tower Group mark-up on temporary workers.
We always endeavour to keep the rate paid to each temporary worker market-related, and in keeping with their skills. To enable our clients to retain the services of top temporary workers it is good practice to periodically review rates paid to temporary workers. Tower can assist with this exercise.
The difference between the fee charged to the client and the fee paid to temporary staff members is not the gross profit made by Tower. There are many statutory cost components associated with maintaining a temporary worker. The cost component relates to the direct costs attributable to maintaining a temporary worker. The cost component is made up of:
- UIF
- Workman's Compensation Insurance
- RSC Levies on payrolls
- Skills Development Levy
- Sick leave
- Annual leave
- Public holiday pay
- Family responsibility leave
- Cost of administration and financing of temporary worker pay
The above costs are fixed and constitute
a substantial part of the rate charged for a temporary
worker.
By separating the direct costs attributable to temporary workers and the Tower mark-up we are able to maintain transparency.
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