In-House Sales and Marketing Staff Or An Agency? Which Hiring Strategy Makes More Sense?

With marketing budgets under pressure and the cost of hiring continuing to rise, it’s more important than ever for business owners to make smart financial decisions. Determining where you can trim unnecessary costs and make efficiencies is a good place to start, but you also need to continue investing in sales and marketing so that a steady stream of new clients comes through the door. After all, the best answer to a cash flow challenge is not to reduce expenditure, but to increase your income! So,when it comes to hiring in-house vs hiring an agency, which approach actually makes more financial sense? Let’s consider the advantages and disadvantages of each.

Boosting Your In-House Team

Whether you own a start-up or an established business, having in-house sales and marketing staff can have several advantages. For example:

• You'll be able to create your ideal team, as you'll be in charge of recruitment, although it can take time, money, and trial and error to get this right.
• You can keep control over your staff's day-to-day activities to ensure that you're getting a good return on investment (ROI), although this involves investing time, money, and expertise in coordination and supervision.
• Communicating directly with team members is sometimes more straightforward than linking in with a third party, unless you have a very streamlined account management relationship.
• Your sales and marketing teams will, in theory at least, be able to work together closely to coordinate efforts and maximise profits.

However, there are also drawbacks to depending solely on an in-house team:

• Unless you have a big building and deep pockets, it may be difficult to build a team containing specialists in all relevant disciplines, making it harder to create and deliver an effective sales and marketing strategy. UK digital marketing specialists are currently commanding salaries of between £45,000 and £75,000 per year, and that’s before you factor in employer’s National Insurance, pension contributions, recruitment fees, and software.
• These staff will need to be recruited, trained, and continually supported, putting pressure on your budget and your HR team.
• You may not be able to adjust your sales and marketing costs to suit your budget rapidly in uncertain economic times, leading to redundancies or unsustainable staff overheads.

Hiring An Agency – The Pros And Cons

There are many good reasons to use a professional marketing agency, particularly during an economic downturn. For example:

• Streamlining your in-house business operations will allow you to keep your overheads low, focusing expenditure on service delivery and product development.
• You won't have to search for staff with in-depth knowledge of specialist areas of sales and marketing, as you'll have a ready-made team on hand with all the skills you need to capitalise on current growth opportunities.
• Your agency can take on routine sales and marketing tasks, so your in-house employees can spend their time more productively.
• It will be easier to scale your marketing plan and budget to account for changing circumstances.

Of course, there are also a few disadvantages to taking this approach:

• You may find it harder to trust people to complete the work you need to a high standard when they aren't on-site, although a reputable agency will keep you up-to-date at every stage.
• You may not agree with everything that your sales and marketing agency recommends. However, while it's important to listen to them, you will always be the ultimate decision-maker.
• The cost may be off-putting. However, it’s worth working through the full costs before making your decision, since the numbers often look very different once you compare hiring in-house vs hiring an agency on a like-for-like basis. For most SMEs, a core agency retainer runs at around £1,000 to £3,000 per month, which in many cases is less than the fully-loaded annual cost of a single specialist employee. For that monthly fee, you gain access to a varied and experienced team of marketing and sales professionals.

The Right Balance to Make Your Investment Go Furthest

In reality, the question of hiring in-house vs hiring an agency doesn’t have to be an either/or decision. The whole point of working with an agency is to make your money go further, and to access professional support in making positive business decisions. The ideal solution for many businesses is to outsource some of their work to an agency while retaining the key staff in-house. This approach can boost productivity, give your team access to specialist skills and tools, and expand your potential for lead generation.

At JDR, we can support you to make the most cost-effective decisions for your business, and work alongside your existing team to maximise your results. Get in touch with our team today and discover how we can help your business reduce cost and increase productivity.

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