Hire or Outsource? Run the Numbers
Run the numbers on hiring versus outsourcing a role, including hidden costs most business owners forget about.
The prompt
I'm trying to decide whether to hire a [role, e.g. "part-time bookkeeper", "marketing coordinator", "operations assistant"] or outsource the work to a freelancer or agency. My details: - Business type: [your business] - Location: [UK region] - Hours needed per week: [estimated hours] - Expected salary if hiring: £[amount] per year - Freelancer/agency quote: £[amount per hour or per month] Calculate the true cost of each option for 12 months, including: **Hiring (employee):** - Gross salary - Employer's National Insurance (current UK rates) - Pension contributions (auto-enrolment minimum) - Equipment and workspace - Holiday and sick pay cover - Recruitment costs - Training and management time - Risk: notice period costs if it doesn't work out **Outsourcing:** - Monthly or hourly fees for 12 months - Any setup or onboarding costs - Management and communication overhead - Risk: dependency on a single provider Present a side-by-side comparison table with the total annual cost for each option. Include a recommendation based on the numbers, but also flag non-financial factors (control, culture, availability, IP) that might tip the decision.
What you get back
- A side-by-side 12-month cost table for hiring versus outsourcing, including the costs most owners forget (employer’s NI, auto-enrolment pension, recruitment, holiday cover)
- A clear recommendation based on the numbers
- A list of non-financial factors (control, culture, IP, availability) that might override the cheaper option
How to use it
Fill in the role, hours per week, salary you would pay, and the freelancer or agency quote you have. The more accurate the inputs, the more honest the verdict.