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In this net-centric business landscape, many companies wonder if outsourcing their digital marketing to a contractor is preferable to hiring a full-time employee.
While insourcing and hiring a W-2 FTE may seem like the traditional choice, it's important to consider the costs, benefits, and potential risks involved in this decision. Here are several reasons why companies in need of digital marketing services should seriously consider outsourcing over hiring an FTE.
Cost Considerations
When it comes to hiring an FTE, companies bear significant costs associated with bringing on a new team member. The total cost of employing an FTE includes not only their salary but also benefits, taxes, training, and equipment. According to the Bureau of Labor Statistics, the median annual wage for digital marketing managers is $140,040 in the United States; for digital marketing specialists, the median annual wage is $68,230.
On the other hand, outsourcing digital marketing tasks to W-9 contractors or agencies frequently provides a more cost-effective solution. Companies can negotiate pricing structures that align with their budget and specific needs. They can choose to pay for services on a project basis, retainer, or an hourly rate. These flexible arrangements can result in significant savings compared to the cost of employing a full-time marketing professional.
Marketing Expertise and Skill Sets
Digital marketing is a rapidly evolving field with ever-changing strategies, tactics and toolkits. To stay ahead of the curve, it is essential to have access to a wide range of specialized skills. Hiring an FTE who can cover all aspects of digital marketing, from SEO and content creation to social media management and paid advertising campaigns, can be challenging and costly.
Contractors and agencies, on the other hand, are experts in numerous areas of digital marketing. They bring diverse skill sets and up-to-date knowledge, enabling companies to tap into the latest industry best practices. This breadth of expertise can be particularly advantageous for companies looking to achieve specific marketing objectives efficiently and effectively.
Flexibility and Scalability
Businesses are not static entities; they evolve and grow over time. An FTE may be an excellent fit for your current needs, but what happens when your business expands or faces seasonal fluctuations? Hiring and keeping employees trained is a time-consuming and expensive process. Moreover, if business conditions change, you may be faced with the difficult decision of layoffs.
Outsourcing marketing tasks to contractors or agencies offers greater flexibility and scalability. You can quickly adapt to your business's changing requirements, whether it's scaling up during peak seasons or scaling down during quieter periods. This agility ensures that you always have the right resources at your disposal, without the long-term commitment and cost associated with FTEs.
Reduced Risks in Outsourcing
When hiring an FTE, there's always a degree of uncertainty regarding whether the new hire will work out as expected. They may not actually have the skill set they claimed during the interview process, and the cultural fit might not be as seamless as hoped. If it doesn't work out, you could be faced with the need to go through the hiring process again, again incurring significant costs and downtime.
Outsourcing to contractors or agencies can mitigate this risk. You can choose providers with a proven track record, industry experience, and established reputations. This reduces the risk of hiring an underperforming FTE, as these professionals are often already vetted and have years of experience in delivering results.
Bottom line - Contractor vs. FTE
Companies in need of digital marketing services should carefully weigh the advantages of outsourcing marketing tasks to contractors or agencies against the traditional route of employing a full-time marketing professional. The cost savings, access to up-to-date specialized skills, flexibility, and reduced risk associated with outsourcing make it a compelling option for many businesses. Ultimately, the decision should align with your company's goals, needs, and budget, but you might want to consider outsourcing as a viable and cost-effective option before you post that next job opening.
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