The True Cost Difference: Hiring Internally vs Digital Partnerships

Consider the following hypothetical scenario. You have an upcoming project and there are two hiring options that you’re considering: hire internally, or partner with a digital agency.

In this post, we dive into the intricacies of the cost-benefit analysis of these two options. 

1. Economical In the Truest Sense

Let’s face it. Hiring a new employee involves numerous costs. From their salary to benefits, training, and onboarding expenses, the financial commitment can be substantial. Based on the following tax considerations, a salaried employee at $150,000 a year will cost $22,500 in payroll tax:

• Payroll Tax: 15% of the employee’s salary
• Social Security: 6.2% on each employee’s wage up to $118,500
• Federal Unemployment Insurance: 6% on first $7,000 of employee’s wages
• Workers’ Compensation: On average about 1.85% of employee’s wages
• Medicare: 1.45% of the employee’s salary

2. Bypasses the Employee Development Dilemma—While Gaining Access to Experts As-Needed

Employee development is an important investment area for organizations, helping boost retention and morale, as well as ensure your team remains at the cutting edge of their respective fields. This requires additional time, resources, and a dedicated strategy. 

Conversely, with a digital partnership, the responsibility of employee development lies with the agency. They ensure their team is top-notch and ahead of technology trends so that you don’t have to. On top of that, digital partnerships can provide access to experts on an as-needed basis. Looking for a specialist for a specific project? No problem. Facing an urgent issue that requires expert intervention? It’s covered. With a digital partner, you can tap into a vast pool of talent exactly when you need it, without maintaining a full-time staff on your payroll for every potential challenge.