Internal more expansive than external?
This is one I have seen too many times, both when working internally as well as being outsourced to companies as well.
Most of the times people compare your daily or hourly rate on a 1:1 basis with their salary levels.
However, what usually is forgotten is the fact that on top of that salary there are all kinds of additional costs like pension funds, sick leave, holiday payments, buildings, IT facilities, phone costs, management overhead etc. etc.
And in most freelance contracts, not to forget, travel costs.
Account for all of these and divide them by the actually worked hours and the trade-off may be less of a problem than you may think.
Actual worked hours is calculated by taking the maximum workable days, all weekdays in a year, where you subtract:
- all "bank" holidays
- all holiday hours given to internal employees
- a percentage of sick leave prevalent for the company over a year calculated in working hours
Take the salary plus all extra costs and divide it by the actual working hours and see what you get.