Employee benefit and Contractor expenses are going up because software engineer salaries have increased massively since the pandemic began. A senior engineer at 150k before the pandemic is now on 200-220k. Consulting companies have also upped their rates. You'll be paying 1400-1800 a day for the quality consultants that Tyro would use. And as salaries go up, consulting companies raise their rates to protect their margins.
Don't expect those contractor and consultant costs to go away. Companies like Tyro always have a contingent of consultants to even out the ups and downs of attrition and hiring. They also use them for training/coaching. REA does this as well.
Yes their costs are going up, but it's not necessarily because they're expanding their workforce. A lot is related to attrition and needing to uplift budgets for existing roles to keep up with the market. It's a very tricky time for companies at the top end of tech hiring.
TYR Price at posting:
$1.63 Sentiment: Hold Disclosure: Held
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