In-House HR vs. Outsourced HR: A Cost Comparison for Growing US Businesses
Hiring a full-time HR manager costs $70,000+ per year. Outsourcing can deliver the same (or better) results at a fraction of the cost. Here is the real math.
The Real Cost of In-House HR
An HR manager in the US earns a median salary of $73,000 per year according to the Bureau of Labor Statistics. Add benefits (health insurance, 401k, PTO), payroll taxes, and overhead, and the true cost is closer to $95,000 to $110,000 annually.
For businesses with fewer than 50 employees, that is a significant line item. And one person cannot be an expert in recruitment, payroll, compliance, benefits administration, and employee relations simultaneously.
Side-by-Side Cost Comparison
When to Choose Each Option
In-House Makes Sense When
- • 100+ employees
- • Complex union relationships
- • Highly regulated industry
- • Budget allows dedicated team
Outsourcing Makes Sense When
- • Under 100 employees
- • Rapid growth phase
- • Need multi-state compliance
- • Want to focus on core business
How BizTech Helps
Our HR Outsourcing plans start at $1,000/month and cover recruitment, payroll, compliance, onboarding, and policy management. You get a full HR department without the full HR department cost. Scale up or down as your business needs change.
Compare your HR costs