Monthly pricing is useful, but the honest way to compare HR options is total cost of ownership over several years. A full-time hire looks manageable at a monthly salary but accumulates raises, benefits inflation, and turnover risk. Here is what three years actually costs each way.
Three-year comparison
| Full-time HR manager | Outsourced HR (Growth tier) | |
|---|---|---|
| Year 1 | ~$85,000 | $42,000 |
| Year 2 | ~$90,000 | $42,000 |
| Year 3 | ~$95,000 | $42,000 |
| Turnover risk | + $30,000–$45,000 if they leave | None |
| 3-year total | $270,000 – $315,000 | ~$126,000 |
The full-time numbers include salary plus roughly 30 percent in payroll taxes and benefits, plus modest annual raises. They do not yet include the cost of turnover, which is the wildcard.
The turnover factor most people forget
The average HR manager stays in a role two to three years. When they leave, you pay to recruit and onboard a replacement, absorb the productivity gap while the seat is empty, and often lose institutional knowledge. Replacing a salaried employee typically costs 3 to 6 months of their salary. Over a three-year window, there is a real chance you hire twice. Outsourcing removes that risk entirely because continuity is built in.
What to include for an honest comparison
| Full-time hire costs | Outsourcing costs |
|---|---|
| Base salary | Monthly retainer |
| Payroll taxes (7.65%+) | One-time project fees |
| Benefits (15–25%) | — |
| Annual raises | — |
| HR software licenses | — |
| Recruiting & onboarding | — |
| Turnover / rehiring | — |
When you put every cost on the table, outsourcing typically comes in 50 to 65 percent cheaper over three years while delivering more senior expertise.
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