“Why would I pay that much when I can just hire someone for £10 per hour?” is a sentence I’ve heard many times. But beware of the on cost!
It’s a question that many of us ask ourselves on a regular basis, across a variety of business services; ‘Should we outsource, or hire in house?’
Well, with years of experience in the B2B telemarketing industry, we’ve helped companies to answer this question – when it comes to hiring telemarketers – it’s simple maths.
And the numbers show that it’s far more expensive to hire in house than most people realise…
Below is a typical cost breakdown model for an in-house telemarketing role, based on the industry average wage of a telemarketer.
Often people don’t realise just how much it actually costs to run an internal operation and how it quickly ends up costing the business circa £20 p/hr (or much more in many cases).
And, at the same time it can often be more problematic, far less consistent and certainly more time consuming for you.
Cost Breakdown
According to Total jobs (2017), the average salary for a telemarketer in the UK is £22,492 (Approx. £10.81 per hour).
So, using this as a starting point, we look at what this would really mean to your business to find what the effective ‘per actual, delivered hour’ cost really is.
In-house cost breakdown
So although you might describe this as ‘loose maths’, you can see, based on a fairly ‘normal’ situation, the cost of each actual calling hour that is delivered is far more that you expect it to be.
So now let’s consider the additional on-costs:
When you break it down and work out each of the above costs, you begin to see just how much it really costs to hire.
Let’s take a look out why outsourcing might be the better option…
The 6 upsides of the outsourced model
Beyond cost, there are several other factors to consider in whether you should outsource or hire in-house. Here are some of the key considerations that you may want to think about:
Lost hours
With an outsourced model, we can catch up lost hours or cover them with a second trained person so they’re not lost in the first place. With internal employees, sickness isn’t always covered so it often means lost time, missed opportunities and lost productivity.
Transparency
We provide live automated reporting, full statistics and call recordings through our bespoke CRM system. You need to ask the question, is there an ability to automate this and have this transparency internally?
If not, do you have the time to create these detailed reports and does your telemarketing team have the time to maintain them?
Proven results
Hiring new employees is a gamble; you have no guarantee that you’ll get people who can perform and if they don’t you have to replace them.
With an outsourced model, we already have highly experienced, trained staff who have proven their capabilities.
People leave
Telemarketing staff move more often than most so even if you do find good performers, it may not be long before they want a pay rise and promotion to another role, or until they leave.
At which point, you incur the time and aforementioned costs of replacing them all over again.
One point of contact
With an outsourced supplier, you have one point of contact and the staff management is looked after for you, giving you time to focus on other things, rather than managing multiple employees.
No add-on costs, no lost hours through sickness, no staff leaving and no hiring.
We hope that this blog gives you a good insight in to the cost of in-house vs outsourcing your next telemarketer.
If you have any questions, feel free to call us on 0345 241 3038 or get in touch.
