Have You Ever Thought About The True Cost of Employees?

Many Times Recruitment Process Outsourcing (RPO) is the Answer

Why You Should Consider Ridgeback RPO

The Outsource vs. In-House Debate

Organizations of all sizes face existential questions of whether to outsource to strategic partners or retain full-time, in-house talent.
It’s not uncommon to only consider the direct costs to maintain employees and not consider the big picture. The truth is that costs to hire and retain employees are far more excessive than the salary you pay them.

Avoid the Expenses Seen Below – Go RPO!


Many Times RPO is the "SMART" Approach When You Compare In RPO vs. In-House Employee Costs

Recruitment costs

Society for Human Resource Management (SHRM) estimates the average cost of hiring one employee to be $4,129.

Payroll expenses

Employees have base salaries with options for bonuses and overtime. Not every month has enough work to justify these costs.

Employment taxes

Federal and state taxes, including social security, unemployment tax, medicare, workplace insurance, and more are all unnecessary burdens for employers.

Employee benefits

Benefits include health insurance, life insurance, disability insurance, and more. In 2018, average insurance costs per employee were $19,616.

Paid time off (PTO)

Employees are entitled to sick days, annual leave, and maternity leave as part of benefit packages. These all directly impact your bottom line.

Office space equipment

Physical offices require rent, maintenance, furniture, equipment, computers, software, phones, printers, internet, and stationery expenses for each and every employee.

Utilities & training

Consider the cost of utilities like electricity, water, internet, food, cleaning, and security. Each employee also requires training, which costs time and money.

Theft and liability

Loss of inventory, loss of work time, loss of equipment due to theft are direct business costs. Liability insurance is also necessary to protect the safety of employees.

So what is the “true cost” of an employee??

Each individual employee + Total Hiring Costs = Cost of 1.4 – 1.5 times above employee base salary to the company

Get "SMART" by outsourcing to a strategic partner

Modern technology enables organizations to outsource many business functions and still be productive. The COVID-19 pandemic forced many companies to incorporate technology and remote work into their day to day operations.

Now, organizations want to work with strategic partners that can provide high-quality services, like talent acquisition, to become even more productive and more competitive. This is the SMART model that allows businesses to succeed and maximize their ROI.

Advantages of strategic outsourcing


Outsourcing is more cost-effective than in-house hires. You save 30% or more - plain and simple.


Streamline with outsourced talent acquisition so internal teams focus on the core business.


Strategic outsourced talent is highly specialized, thereby completing tasks faster and easier.


Adapt to market conditions without overhead burdens by hiring when and how you need.


Outsourced talent only requires payment for jobs well done. Eliminate legal costs of in-house hires.


No geographic barriers with outsourced talent. Find the right person with the right skills anywhere.