What is the cost to hire an Administrator?
Introduction
Administrators are hired by businesses according to need, offering potential competitive wages and packages to bring in great talent. The job title may vary from business to business, however, the basics of the job remain equivalent across the industry. All businesses need administrators, someone to manage day to day tasks, scheduling, communications, and other clerical tasks.
Administrators are the front office for many businesses. The structure of the office remains basically the same. The administrator is generally considered the gatekeeper for any business. This is the primary basis for my business, Office Wife, LLC.
Monthly Cost of Hiring an Administrator
The monthly cost of hiring an administrator can vary significantly based on several factors, including industry, location, experience, and the specific responsibilities of the role. Below is a breakdown of the typical costs associated with hiring an administrative employee.
Administrator Salary
The base salary for an administrative position can vary widely. In the United States, the average salary for an administrative assistant ranges from $35,000 to $60,000 per year, translating to approximately $2,917 to $5,000 per month.
Research for the base salary of administrators varies according to the industry. For instance the base salary quoted at Salary.com, a Network Administrator V earns upwards of $160,000 p/year. The purposes of this article and my business, we will remain with the base salary offered to administrators at between $35k and $60k.
Benefits offered to an Administrator
A comprehensive benefits package generally depends on the company culture, demographics, resources, and market trends. The more competitive the market the greater the benefits packages may get. Competition along with supply and demand may also play a key role.
These benefits include the basics as listed below, some may include extra benefits, like a company car and expense account.
- Health Insurance: Employers often cover a portion of health insurance premiums, which can range from $300 to $800 per month per employee. Many employers may offer to pay the full cost of an employee’s health insurance and add on for family members.
- Retirement Contributions: Many companies offer retirement plans, contributing around 3% to 6% of the employee’s salary. These retirement plans may include shares in the company, 401ks, IRAs, and matching contributions to any of these.
- Paid Time Off (PTO): The cost of PTO can be calculated based on the employee’s salary and the number of days off provided. Paid Time Off can be defined as mental health days, vacation and sick days, holidays, and leave for family needs.
- Other Benefits: This may include life insurance, disability insurance, and other perks, which can add an additional $100 to $300 per month. As stated previously, these benefits can include the use of a company car and expense account. It may also include a cell phone service, computer, or other similar benefits.
Taxes
Employers must pay into State and Federal taxes. Below are three of the primary categories that are routinely deducted from an employees wages.
- Social Security Tax: 6.2% of the employee’s salary.
- Medicare Tax: 1.45% of the employee’s salary.
- Unemployment Insurance: Varies by state but can average around 1% of the salary.
Overhead Office Costs
Hiring an employee means providing office space, a desk with supplies, computer, phone, and other items required by the administrator to perform her/his job efficiently.
- Office Space: Rent, utilities, and maintenance costs associated with providing a workspace.
- Equipment and Supplies: Computers, software, office supplies, and other necessary tools.
Summary of Monthly Costs
The following chart show an estimated cost of hiring an employee as an administrator. It can pertain to hiring employees in general, the salary may vary slightly depending on the job and the industry.
| Cost Component | Estimated Monthly Cost |
|---|---|
| Base Salary | $2,917 – $5,000 |
| Health Insurance | $300 – $800 |
| Retirement Contributions | $100 – $300 |
| Payroll Taxes | Varies (approx. 7.65% of salary) |
| Overhead Costs | Varies (approx. $200 – $500) |
Total Estimated Monthly Cost
Hiring an in-house administrator may in many cases cost you more than hiring a remote administrator. When considering all these factors, your total monthly cost of hiring an administrator could cost you from an estimated $4,500 to $8,000 or more per month. Variables would consist of the benefits you offer which affects the overall monthly expense.
Summary
The above are all factors a business should consider when seeking to hire an administrator as an employee. Including the need for HR, office procedures, and other manuals every business needs to have in play to ensure a safe office experience.
Whereas, hiring an contract administrator, such as Office Wife, LLC, at $50 per hour can be a highly cost-effective solution for businesses compared to employing a full-time staff member. That is the total cost of hiring, the per hour rate. The other benefits include specialized skills, quicker turnaround on projects and tasks, no extraneous expenses nor making space for another person in the office.
Rather than paying an employee for the day at the office, a remote administrator is paid only for the actual hours it takes to complete the requested tasks. Your cost would range from $50 to $300 a week. You are not incurring the expense of health insurance, retirement plans, vacation pay, office supplies, and other expenses. The administrator working from her own office is responsible for her taxes, insurance, office supplies, etc.
Moreover, remote administrators often bring specialized skills and experience that enhance productivity and efficiency, allowing in-house teams to focus on core business activities. The ability to access a global talent pool means businesses can find the best fit for their specific needs, often resulting in quicker turnaround times for tasks. Overall, hiring a remote administrator not only reduces costs but also provides a strategic advantage by improving operational efficiency and enabling companies to concentrate on growth.
In Closing
Unsure if hiring Office Wife, LLC for your administrative tasks is for your business? I specialize in the small businesses with limited resources and income, this is why I have kept my fees lower than most of my competitors. Yes, you can find those who charge even less, for instance a virtual assistant in the Philippines or other countries charge between $5 to $10 p/hr on the average.
I offer a variety of services for small businesses. Administrative Services, Loan Coordinating Services with referrals to reliable lenders, and a few other services. I am expanding the offerings every week.
Let’s discuss your needs and how I may best serve you today. Appointments available through out the week.
