Advice You - Business

Reliability, hiring and termination costs are persistent problems in the electrical contracting industry. Thorough screening, testing and interviewing techniques can help prevent reliability issues. The question is, do you have time to do all of these things and maintain focus on the job site?

First review a list of functions your company must do to hire,

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

maintain and retain an employee. Place a cost on each item using the time value of the person who must handle each separate item. For example and simplification, your office manager earns $15.00/hour and spends a half-hour a day dealing with employee issues. The time value is $7.50 to perform that function. Do this for each item listed below and come up wit

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

h a daily total amount. Divide the total by 8 and determine if you are performing the functions cheaper than the staffing company can. Most electrical contractors can not because they are set up operationally, not administratively.

If you need a guideline to compare costs, most staffing companies charge a very small amount on top of each hour billed; use 5

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

-7% as a general rule. Keep in mind this includes all labor burden costs including state/federal payroll taxes, worker’s com, liability insurance, payroll processing, etc (see list for the rest).

Outsourcing your human resources function eliminates the need for:

Placing job ads, handling phone calls from ads, processing job applications,checking reference

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

s,performing criminal background checks, scheduling and paying for drug testing (if required), scheduling and conducting interviews, controlling Worker’s compensation insurance costs, maintaining liability insurance on employees, paying for office staff human resources training, employee handbook development, safety program development, administration and

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

injury reporting, payroll administration, mailing checks and setting up direct deposit accounts, payroll tax accounting – weekly payroll and annual mailing of W-2’s, time tracking of field employees (electricians), offering and administering health and savings plans, worker’s compensation claims processing, processing unemployment claims, handling court or

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

dered garnishments, paying attorney’s fees if a suit is filed against your company, addressing and processing NLRB issues, dealing with and paying for other post-employment obligations (wrongful termination suits, HIPPA notifications, etc)…and all of the other time consuming costs not mentioned above that chew into your bottom line!

What many electrical co

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

ntractors do not take into consideration is the amount of time away from production and the amount of time their office staff devotes to recruiting, hiring and maintaining each employee on the payroll. This is a variable cost outsourcing labor solves.

Going back to the numbers, variable costs are costs that can be varied flexibly as conditions change; like

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

the number of electricians you need to carry on your payroll at any given time. The point made here is that labor is a much more flexible resource than capital investment. Outsourcing labor provides you and your staff with freedom away from time consuming human resource functions. The time you save is better spent marketing, dealing with customers, suppli

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

ers, and focusing on the work at your project site.

Spend time to add up the time and cost of the listed functions involved in hiring and retaining electricians. Ask a staffing company to provide you with a cost breakdown of their hourly charge for each electrician’s skill level. Keep in mind staffing companies cover all the costs you would and charge a no

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

minal account administration fee (the fee is normally much less than what companies spend on the list of HR functions). Compare the costs. Remember to consider the intangible benefits of reduced liability, time savings and increased freedom to focus on your customer.

Most contractors will agree that for any given electrical contracting project, outsourcing

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

is cost effective. One key point that must be emphasized is outsourcing labor is not a “one size fits all” solution to controlling variable costs. Businesses that are comfortable where they are do not make good candidates. On the other hand, a business that wants to grow while maintaining tight control over variable costs makes an excellent fit.

We can ne

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

ver predict when an employee will decide to leave a company but, we can control what it will cost to replace that person using effective outsourcing strategies. Keeping the right mix of permanent and temporary employees is the key to controlling the priciest variable costs in our industry – labor. Outsourcing electricians allows you to control variable cos

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

ts that are discussed in the next few paragraphs.

As you are aware, variable costs are the costs directly linked to the tempo of operations in electrical contracting. They are called variable because they vary with the size and workload of the business. This means that the more projects bid and won; the more labor, material, etc. costs will rise. The more

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

labor costs rise, the more employee-related administration costs go up.

This, of course, is in contrast with fixed or overhead costs. These costs are those that are incurred regardless of whether or not your company works one or ten projects. These costs do not vary as the pace and size of your operations change unless a dramatic change is made. Variable c

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

osts are project specific, whereas, fixed costs are associated with the entire company. Office leases/mortgages have to be paid no matter what is produced or in what numbers. Hence rent or a mortgage is a fixed cost.

Consider a situation where you determine your electrical contracting service yields a 25% contribution margin. Your figure can then be used t

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

o determine whether variable costs for your project(s) can be reduced. You can choose to bump up the price of materials and/or reduce your labor costs.

Material pricing adjustments is the easy part. Labor costs are not. To attract and retain quality electricians, you must pay more than the competition, offer benefits and training.

Remember your bottom li

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ne or net profit is determined by how you decide to spend each penny of your contribution margin on fixed costs. We know you can control your fixed costs by deciding on how much to spend on vehicles, equipment, tools, phone service and all the rest of your business needs

But, what is the true cost to attract, hire, manage and retain a qualified electrician

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

for a three month project and what is the cost to hire a permanent/full-time employee? You probably know the answer, the cost is the same. It is the replacement cost of the employee that will eat into your bottom line after you conduct all of your human resource or human capital management functions in-house. And what price do you place on the expenditure

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

to bring someone new into your company? And what does it really cost to replace that person? The answer is simply the cost of time – your time, your staff’s time and all time removed from project related activities.

Learn more about outsourcing electricians at Strategy Construction's Web Site

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.adviceyou.org.ua/article/32959/adviceyou-Electrical-Contractors-and-Outsourcing.html">Electrical Contractors and Outsourcing</a>

BB link (for phorums):
[url=http://www.adviceyou.org.ua/article/32959/adviceyou-Electrical-Contractors-and-Outsourcing.html]Electrical Contractors and Outsourcing[/url]

Who are your customers? It is a question I often ask new clients. Can you categorize each of your customers into one of the following categories?

Many of my carpet cleaning peers were complaining about how slow it was for them during the winter months. So I put together what has become known as the “Paul Douglas Action Plan”. I took the 13 steps outlined in this plan and modified it to fit any business that needs to blast out of a slow season slump. Take the steps outlined in this article to bust out of your slump today.

So you want to ask for a raise. You are not the only one. Most employees feel they deserve a salary raise. What are the secrets that will make you stand out from the crowd and get the raise? I've got 9 powerful tips for you. Implement the following strategies with faith and vision and you will succeed. Keep reading.

Tags

Links

Advice You - Electrical Contractors and Outsourcing

Related Articles: