Welcome to B & M Bulletin, produced specifically for users of contract IT services. In this issue:
• So you think it's cheaper to use permanent staff?
• Tech View: what are IT qualifications worth?
• Top 10 costs of employing permanent staff
• B & M staff member profile - Account Manager Seamus Hayes
• Profiles shop window
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So you think it's cheaper to use
permanent staff?
Jerry Smart explains why the real cost of employing permanent staff for certain projects may be much higher than you imagine
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"..the real cost of employing someone…"
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At first glance contract staff may appear expensive, but when you compare the real costs of employing someone full-time with those of taking on a contractor, the numbers may be closer than you might think. In order to calculate the true cost of employing a permanent member of staff you need to add up:
- What you actually pay to employ them - such as their remuneration package, Employer's NI, healthcare insurance and company car costs
- The one-off recruitment costs of finding and employing them, including advertising and interview costs, employment agency fees and the time spent on selection by personnel and management staff
- Ongoing indirect employment costs - in other words, an apportionment of management time and HR time, plus fixed overheads such as their IT and communications equipment and infrastructure, a dedicated part of the building, energy costs - the list is almost endless
- The underlying cost to the business of paying a permanent person at times when they may not be fully utilised.
When you take someone on contract, it is all much simpler: you simply pay the daily rate for the duration of the contract.
This is just one of the reasons why most large corporates like to have a certain percentage of their workforce on contract (often around 20 per cent, depending on the nature of the business). This not only gives them greater flexibility if their business changes, but also helps keep the costs outlined above under control.
There is also a third option whereby certain IT projects can be serviced on a turnkey basis, where the work is delivered as a service and those who produce it do not show on the company’s headcount. Another plus is that these projects can often be funded out of business budgets rather than departmental budgets. The cost of this should be comparable, but the impact on the business in terms of management time and risk of wastage is significantly less.
For optimum value from your contract staff or Turnkey Projects, please contact sales@bmeurope.com.
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Tech View: What are IT qualifications worth?
Paul Smith, Technical Director at B & M, explains why today's technical qualifications are worth the paper they're written on
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Historically, IT has been a profession where experience is the most desirable attribute in a contractor, so is there any point for employers in taking notice of candidates' IT qualifications?
Software and hardware manufacturers work hard to ensure that the certifications that carry their brand names have real meaning and that these qualifications remain valid by fighting abuses of their schemes. To ensure that the Microsoft Certified Systems Engineer (MCSE) certification (once infamously dubbed ‘Must Consult Someone Else’) is not just seen as a 'paper qualification', Microsoft has now reviewed its exams, making them more difficult and putting more emphasis on practical skills.
But how do you tell what a certificate is worth? Companies such as CISCO, for example, classify their certification levels in different ways, typically: Specialist (in VPN Security, for example); Associate (such as CCNA); Professional (e.g. CCNP) and Expert (CCIE). Microsoft offers a wide range of certifications by segment, including administration, development, architecture and education. Most of IBM’s certifications are for their newer 'technology umbrella' platforms - WebSphere, Tivoli, DB2, etc. - but there appear to be none that recognise expertise in ‘traditional’ mainframe software such as z/OS, CICS or IMS. At B & M, our experience is that at present IBM Certifications are seldom requested by employers.
Where it is appropriate, you should ask a candidate to demonstrate that the certifications they carry are valid - a CCNA, for example, is valid for three years. Someone with an MCSE qualification should be able to provide you with their module scores. Ultimately there is no substitute for solid experience, but a qualification can go some way towards verifying an individuals abilities.
For access to specialists with experience and proven qualifications, contact sales@bmeurope.com.
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10 costs of employing permanent staff
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When you employ a member of staff full time, there is a raft of costs to consider. However, few organisations consider them all when calculating the relative costs of permanent staff, compared with using contractors. Have you?
Our 'top ten' costs of employing permanent staff are:
1. Salary
2. Bonuses and allowances
3. Employer's Social Security (National Insurance)
4. Training
5. Holiday pay
6. Sickness pay
7. Maternity or paternity leave
8. Benefits such as staff events, private healthcare, subsidised pensions etc.
9. Staff loans - particularly the scheme to buy season tickets
10. Relocation fees for staff who need to move from abroad or another part of the country
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Real Skills. Real People - B & M's Seamus Hayes
This month, we profile Account Manager Seamus Hayes
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Seamus Hayes is an IT sales professional with over 30 years' experience - mainly in the services sector.
Seamus began his career with a subsidiary of the Glaxo Group, training staff to use computer systems for such activities as telesales and stock control. In 1984, Seamus began working in sales for Nixdorf Computer (now Siemens-Nixdorf), where he handled accounts in the government and financial sectors. He later worked in sales management for Omron Systems and Datalect Computer Services, before being appointed European Services Sales Director for Hitachi Imaging Solutions in 1998.
In 2000, Seamus moved to the Gartner Group and then to Allnet Limited (a subsidiary of Cable & Wireless) before joining B & M in July 2004.
Seamus enjoys sport and has played football at a senior amateur level. Nowadays he prefers golf, which he plays with a handicap of 12.
To contact Seamus or any of his colleagues, email sales@bmeurope.com
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B & M offers you the opportunity to view the credentials of some of our most senior IT contract specialists before you get in touch with us. We have active relationships with some of Europe's most experienced IT specialists for z/OS, Unix and network communication systems, including notable technicians skilled as:
• WebSphere Specialist
• Unix Systems Administrator
• DB2 Systems Programmer and Database Administrator
• MVS Systems Programmer
• MQSeries Specialist
• Network Specialist
• CICS Systems Programmer
For more details, go to www.bmeurope.com/profiles or call us on +44 (0)118 981 1880.
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B & M has specialised in delivering skilled ICT specialists to meet the needs of leading organisations throughout Europe since 1992. We focus exclusively on providing consultancy, technical services and support for z/OS, UNIX and Linux enterprise systems, including third-party systems software, open systems and networking connectivity. We add real value for HR and IT professionals by taking the time to understand their needs and applying best practice methods to deliver results. To find out more about our approach to providing the best skills for each business, go to www.bmeurope.com B & M Europe Limited
www.bmeurope.com
+44 (0)118 981 1880
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