Retainer Services vs. In-House Employees

Retainer Services vs. In-House Employees: Making the Smart Choice for Your Business

Every year, businesses face the same issue: Budget. You crunch the numbers, connect the dots, and no matter how hard you try, you’re always left struggling with how to cut expenses while supporting growth. At Stellar, we understand these challenges and aim to provide solutions that offer the best value for your investment.

We're often asked, "Is it more cost-effective to use retainer services for web design and development or to hire a new in-house employee?" It's a tough decision, often influenced by your current goals and where you envision your business in the future.

The Cost of a New Employee, by the Numbers

According to the Bureau of Labor Statistics, salary accounts for 68.6% of total civilian employee compensation, while benefits account for the remaining 31.4%. So, how much does it really cost to hire a new employee?

Breaking Down the Costs:

• Base Salary: Let's say your new web developer has a base salary of $100,000.
• Benefits: Add another $45,772 for benefits.
• Total Annual Cost: This brings the annual total to $145,772, or $12,148 per month.

Pros and Cons of Hiring a New Employee

Pros:

• Dedicated Presence: An in-house employee is available to address needs and questions promptly, assuming they aren’t on vacation or otherwise unavailable.
• Multifunctional: They might assist in other roles beyond their primary duties, providing additional flexibility.

Cons:

• Limited Skill Set: Finding one person proficient in all aspects of web design, development, SEO, and social media is challenging.
• Additional Costs: Tools and subscriptions for social media scheduling, graphic design, and keyword research add up.
• Administrative Tasks: A significant portion of an in-house employee's time is spent on administrative tasks, meetings, and other non-productive activities.
• Training and Development: Ongoing costs for training and professional development.
• Opportunity Cost: Hiring for this role might mean not hiring for another essential position in your company.
• Turnover Risk: The median tenure for employees aged 25-34 is just 2.8 years, risking the loss of investment if they leave.

The Value of Stellar’s Retainer Services

Opting for retainer services with Stellar means you get a team of experts dedicated to your success without the added costs and risks associated with hiring in-house.

Cost and Benefits:

• Monthly Retainer Cost: Our retainers start at $3,200 per month, which is $38,400 annually.
• Efficiency: Unlike a full-time employee who may spend significant time on administrative tasks, our team provides focused, expert-driven work without downtime.
• No Hidden Costs: No extra costs for tools, subscriptions, or training. Everything you need is included in the retainer.

Pros and Cons of Retainer Services

Pros:

• Expertise on Demand: Access to a full team of experts across web design, development, SEO, and more.
• Consistent Support: Continuous improvements and updates without the worry of turnover or knowledge loss.
• Up-to-Date Practices: Our team stays current with the latest trends and strategies, ensuring your business benefits from the most effective techniques.
• Flexibility: Our services integrate seamlessly with your team, providing the support you need without lock-in contracts, giving you peace of mind and flexibility.

Cons:

• Multiple Clients: Agencies typically juggle multiple clients, which can sometimes delay responses.
• Client Communication: Projects can be delayed if regular communication isn't maintained.
• Task Prioritization: Agencies may not move as quickly on specific tasks as an in-house team focused solely on your business.

Making the Right Choice for Your Business

Evaluating the return on investment for both hiring an employee and engaging retainer services involves considering your business’s unique needs and long-term goals. The right choice will position your business for success and growth.

At Stellar, we’re here to help you make the best decision for your business. If you’re considering retainer services and want to learn more about how we can enhance your team, provide expert support, and drive your business forward, contact us today. We're happy to answer any questions and help you explore the benefits of our comprehensive web design and development services.

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