The worker’s comp rate for office staff at CompanyHQ is more than fifty times less than it is for office staff in concrete construction service businesses. This is because Table B of the NSW WorkCover Industry Classification System says:
“Administration Services; Head Office Activities; Clerical and/or Management Services; Sales and Marketing; Technology and/or Computer Support Services. These activities are not entitled to a separate class, but should be considered incidental to the employer’s other activity . . . and will attract the percentage rate of the class that is appropriate to the employer’s business.”
In addition, office staff salaries or wages for smaller companies can also push the business over the $750,000 threshold for payroll tax. In NSW that is another 5.45% cost on top of everything else.
Finding efficiencies in business operations, is a game of percentage points. Saving a few percent here, five percent there. It all adds up if you are prepared to look for it. For some it is all too hard, because efficiency gains require diligence and a preparedness to sometimes make changes.
Companies that constantly look for efficiency savings become more competitive, because they can afford to trim their rates on jobs to pull more work – and still hit their margin targets.
Running an office administration is considered by WorkCover to be “incidental”, resulting from, or connected with a businesses’ main activity. Yet, working at a computer in an office presents a totally different work risk, because it is an entirely different function than working on site, or operating heavy plant and equipment.
If office administration is a completely different function and skill-set to construction, or field based trades work, then it is perhaps logical to focus the resources of the business only on its core functions. Today, office administration does not have to remain connected to the primary business activity.
Technology and mobile applications make it is easy to capture data in real time and integrate it across a range of business functions. There are massive efficiency gains and savings to be made by contracting out your office roles, to specialist administration services. Cutting workers compensation and payroll tax are two additional benefits that make the idea even more compelling.