As a business owner, it’s a top priority to ensure you’re making the most of your IT budget. Services like cybersecurity and IT support are critical to functioning day-to-day, so this isn’t a topic you should take lightly.
If you have an existing IT department, you may not be aware of the unnecessary expenses you’re incurring on a monthly basis. Are you leveraging your budget effectively? Are you paying more (or less) than you should for critical functions? To help you answer these questions for yourself, here’s a guide on what in-house IT should typically cost and why.
The cost of your IT staff will depend on several factors, including:
According to the Bureau of Labor Statistics, the average annual wage for an IT professional (including job titles like “Computer Network Support Specialist”, “Database Administrator”, and “Computer User Support Specialist”) is in the ballpark of $100,864.55.
When you bring on staff, the upfront costs of hiring vary from business to business. You may choose to offer a sign-on bonus if you’re urgently hiring. After the pandemic, many IT professionals prefer to work remotely, so some companies offer remote work stipends for home offices.
In addition, it is wise to invest in company-owned devices for greater cybersecurity, as Bring-Your-Own-Device policies put you at high risk for cyberattacks. If you have an established work from home model, this is especially true for video conferencing.
To read more about the dangers of allowing staff to use their own devices to remotely call into meetings, check out our blog: Bring Your Own Device & Video Conferencing: Don’t Jeopardize Your Data.
The BLS lists the following job titles and average annual salaries for IT professionals:
|
Computer Support Specialist |
$64,410.00 |
|
Computer Network Support Spec. |
$76,060.00 |
|
Computer User Support Specialist |
$61,580.00 |
|
Database & Network Administrators & Architects |
$110,400.00 |
|
Computer network Architects |
$129,490.00 |
|
Database Administrators |
$102,530.00 |
|
Database Architects |
$136,540.00 |
|
Network & Computer Systems Administrators |
$97,160.00 |
|
Software & Web Developers, Programmers, &Testers |
$124,940.00 |
|
Web & Digital Interface Designers |
$101,740.00 |
|
Computer Operations, All other |
$104,660.00 |
This information can be accessed via the Bureau of Labor Statistics website here. Some markets may vary, and ultimately you decide what pay your IT staff. However, if you want to find the best of the best talent on the market, it’s best to be prepared to offer competitive pay unless you want less experienced candidates.
“Benefits” are defined under the following categories and corresponding percentage of employee compensation that they cost employers:
Some legally required benefits you’re likely aware of include social security & Medicare (6%) federal unemployment insurance (.1%), state unemployment insurance (.3%), and workers compensation (1%).
Assuming an average benefits rate of 31% of total annual wages, benefits costs ranged from around $19k to $42k. This brings the total annual cost of one IT employee to around $131,930.83.
These numbers are approximate, and are meant to give you a general range of what to expect when hiring an in-house IT employee.
IT support is as crucial as an HR representative and as indispensable as a department manager. This is because they lead your technology innovation while securing your business from mounting cyber threats. In this way, your business is only as productive and secure as your IT department allows.
This means IT is a worthwhile investment. However, if you have only one or a handful of professionals managing your technology in-house, you’re limited to their personal areas of expertise. This pokes a hole in their ROI, especially since finding candidates with multiple crucial specialties can be difficult.
Not only are these unicorn candidates hard to find, they can be difficult to retain due to the competitive salaries other companies offer.
Technical support providers, on the other hand, charge per user per month. This makes these services ideal for smaller businesses with fewer seats. In addition, many companies specialize in small business managed IT services.
To read more about IT service plans and the benefits of managed IT services for small businesses, read our blog: How Outsourced IT Services for Small Businesses Are a Secret Weapon For Success.
As for MSP pricing, expect a per-user cost ranging from $150-200 per month. To learn more about the ins and outs of managed technology services and their cost-effectiveness, read our blog: How Much Does Managed IT Support Cost?
Some businesses opt for a “hybrid” IT strategy that involves their in-house IT department collaborating with a managed IT provider. This is a good option if you want to keep your IT department but still want access to the resources of an IT management company.
To read more about the similarities and differences between in-house and outsourced IT, and how they can work together, read our blog: Outsourced Managed IT services VS. In-house IT support.
When you’re planning your business’ technology, you should include items like a technology roadmap to keep your tech stack up to date. After all, the costs of outdated or faulty IT are exponentially higher than both an in-house tech or outsourced IT services.
If you’re ready to level up your It strategy and catch any discrepancies that could be weighing on your budget, click the button below to speak to an expert about your business.