3 ms·
Salary is like 15-20% of costs. Best case you reduce that to 7-10% but also more taxes and other business costs. I'd imagine most businesses would save under 5%
by _8j50 3y ago
Salary is like 15-20% of costs. Best case you reduce that to 7-10% but also more taxes and other business costs. I'd imagine most businesses would save under 5% of costs all things considered but then is that 5% worth losing access to US gov contracts, access to US investors and other contacts and other opportunities? Maybe, depends on the business.
IMHO, the US is best for your HQ but you should stratrgically outsource labour like that if the salary savings make sense. Profit margin of 5% vs 30% is a big deal too.
Everyone wonders why healthcare sucks and labor laws are horrible in the US. This is why. Cali alone is the 4th biggest economy, and it's not exactly like silicon valley doesn't outsource to China and India, import h1b or farmers don't use cheap illegal immigrant labour either.
Can't have your cake and eat too. Can't make the working class happy and the wealthy class happy enough to stay, at least not at the national scale.
- ztrww 3y ago> Salary is like 15-20% of costs That really, really depends on your business model. For most software companies it’s much higher than that (especially if you factor in stock based comp) > Everyone wonders why healthcare sucks and labor laws are horrible in the US. I’m not sure that’s connected. Salaries for tech workers are higher because of much higher demand than in Europe, if it was easy to get a green card.. that would change. Also not sure what does this have to do with healthcare? Americans and American companies especially (since in Europe you have to cover most of the costs through taxes or insurance yourself) spend much more on healthcare than Europeans do. and anyway, the US healthcare system seems like a great deal when you earn 200-300k+, much better to pay (or have your employer pay) a fixed fee than ~10% of your income.