The Headline Numbers: Local vs. Offshore Salary Comparison

As an HR & Philippine Labor Compliance Specialist here at ShoreAgents, I often get asked about the cost difference between hiring locally and building an offshore team in the Philippines. The most obvious difference is the base salary. For many roles, you can expect to pay significantly less for a skilled professional in the Philippines compared to Australia, the US, or the UK. We're talking potential savings of up to 75% on salary alone. Related reading: first time hiring offshore for business owners.

Let's look at some examples based on our experience here at ShoreAgents:

• Real Estate Virtual Assistant: A skilled real estate VA in Australia might command a salary of $60,000 - $80,000 AUD per year. Through ShoreAgents, you can access a comparably skilled VA for around $20,000 - $25,000 AUD per year.
• Customer Service Representative: Hiring a CSR in the US could easily cost you $40,000 - $60,000 USD annually. An offshore CSR through ShoreAgents could be in the $15,000 - $20,000 USD range.
• Digital Marketing Specialist: A UK-based digital marketer might expect £35,000 - £50,000 per year. You could find a talented Filipino digital marketer through ShoreAgents for around £12,000 - £18,000 per year.

These are just a few examples, and the specific costs will vary depending on the role, experience level, and specific skill set required. However, these numbers illustrate the significant potential savings on base salaries.

Beyond Salary: Uncovering the Hidden Costs of Local Hiring

While the initial salary is a major factor, it's crucial to consider the hidden costs associated with local hiring. These costs can quickly add up and significantly impact your overall budget.

• Recruitment Costs: Advertising job openings, screening resumes, conducting interviews, and background checks all require time and resources. Using recruitment agencies can add a substantial fee, often a percentage of the first year's salary.
• Employee Benefits: In many countries, employers are legally required to provide benefits such as health insurance, paid time off, retirement contributions, and other perks. These benefits can add a significant percentage to the base salary.
• Office Space and Equipment: If you're hiring locally, you'll need to provide office space, furniture, computers, software licenses, and other equipment. These costs can be substantial, especially if you're expanding your team rapidly.
• Training and Development: Investing in employee training and development is essential for long-term success. However, these programs can be expensive, especially for specialized skills.
• Employer Taxes and Contributions: Don't forget employer-side taxes like payroll tax, social security contributions, and worker's compensation insurance.

When you add up all these hidden costs, the true cost of hiring locally can be far higher than the initial salary suggests. With offshore hiring, ShoreAgents handles many of these costs, providing a more predictable and transparent pricing model.

The ShoreAgents Advantage: Transparent Pricing and Zero-Trust Model

At ShoreAgents, we believe in transparency and providing our clients with a clear understanding of the costs involved in offshore hiring. Our pricing model is designed to be simple and predictable, with no hidden fees or surprises. See also: is cheap offshore labor actually cheap? a.

We also operate on a zero-trust model, which means we provide our clients with complete visibility into the work being done by their offshore team. This includes desktop tracking, regular performance reports, and open communication channels. This level of transparency ensures that you're getting the value you're paying for and that your offshore team is performing to your expectations.

Here's what our pricing typically includes:

• Salary: We negotiate competitive salaries with our Filipino staff, ensuring fair compensation while still providing significant cost savings for our clients.
• Benefits: We handle all employee benefits, including health insurance, paid time off, and government-mandated contributions.
• HR and Compliance: Our team of HR professionals ensures that all our staff are compliant with Philippine labor laws and regulations.
• Infrastructure: We provide office space, computers, software, and other necessary equipment.
• Management and Support: We provide ongoing management and support to both our clients and our offshore staff.

By outsourcing these responsibilities to ShoreAgents, you can focus on your core business and avoid the headaches and costs associated with managing a remote team yourself.

Real-World ROI: Calculating the Return on Investment of Offshore Hiring

Ultimately, the decision to hire locally or offshore comes down to ROI. To accurately assess the ROI of offshore hiring, you need to consider all the costs and benefits involved. Let's look at an example:

Scenario: A real estate company in Australia is looking to hire a marketing assistant.

Option 1: Hire Locally

• Salary: $65,000 AUD
• Benefits (20%): $13,000 AUD
• Recruitment Costs: $5,000 AUD
• Office Space & Equipment: $3,000 AUD
• Total Cost: $86,000 AUD

Option 2: Hire Offshore through ShoreAgents

• All-inclusive cost: $22,000 AUD

Cost Savings: $64,000 AUD

In this scenario, the real estate company would save $64,000 AUD per year by hiring an offshore marketing assistant through ShoreAgents. This is a significant cost saving that can be reinvested in other areas of the business, such as marketing, sales, or product development. See also: i can't afford employees: how offshore staffing.

But the ROI goes beyond just cost savings. By freeing up your local team from administrative tasks, you can allow them to focus on higher-value activities, such as strategic planning and business development. This can lead to increased revenue and profitability.

Making the Right Choice for Your Business

The decision of whether to hire locally or offshore is a complex one with no easy answers. It depends on your specific needs, budget, and business goals. However, by carefully considering all the costs and benefits involved, you can make an informed decision that is right for your business.

If you're looking to scale your business, reduce costs, and access a talented pool of professionals, offshore hiring through ShoreAgents is definitely worth considering. We can help you find the right people for your team and provide you with the support and resources you need to succeed.

Ready to explore your offshore hiring options? Contact us today for a free consultation.