The True Cost of Hiring a Marketing Manager vs. Using a Freelancer
The decision to hire a marketing professional can be a difficult one for any business owner. The options for executing a marketing strategy are vast and come with their own set of pros and cons. In-house marketing teams can be an excellent choice for some companies while outsourcing to a freelancer or marketing agency can be the better option for others. This article will explore the costs of hiring a marketing manager versus using a freelancer or marketing agency.
The Cost of Hiring a Marketing Manager
Hiring a full-time marketing manager can seem like an attractive option. According to uk.talent.com the average salary for a marketing manager in the UK is £40,000. It can range anywhere between £35,000 and £55,000 per annum. Junior marketeer salaries range anywhere between £22,000 and £30,000.
Let’s look at the true cost of hiring a marketing manager with a lower salary of £35,000.
It is essential to consider the additional costs that come with hiring an employee. Here are some of the hidden costs of hiring a marketing manager (or any other member of staff, for that matter):
Recruitment fees: Companies need to spend money to advertise job vacancies and may have to pay recruitment fees to headhunters or recruitment agencies.
Office and technology setup: The cost of providing the necessary equipment, software, and workspace for a new hire.
Pension and national insurance contributions: Employers are required to contribute to their employee's pension scheme and national insurance contributions.
Training costs: Companies need to invest in the training of new hires, so they can become proficient in their roles.
Sick leave and annual leave: Employers must offer paid sick leave and annual leave to their employees.
Annual bonus and employee benefits: Employers may offer a bonus and other employee benefits to retain their employees.
When factoring in these additional costs, the true cost of a marketing manager in their first year of employment is closer to £55,000 - £65,000 based on the benefits package of your business. You get an idea of how it is calculated on a True Cost of an Employee Calculator (the figure shown is basic without any bonuses or allowances).
Additionally, hiring for this role can be difficult, and finding the right candidate with the required skills and experience is a challenge. Retaining a marketing manager can be equally challenging, as the path to progression can be limited.
The Benefits of Using a Freelancer or Marketing Agency
Outsourcing marketing functions to a freelancer or marketing agency has its benefits. Here are some reasons why it may be a better choice for some companies:
Cost-effective: The cost of hiring a freelancer or marketing agency can be much lower than hiring a full-time marketing manager. Freelancers and agencies may charge by the hour, or often offer various packages based on clients' needs and budgets.
Flexibility: Outsourcing to a freelancer or agency allows companies to scale up or down their marketing functions, based on their business's changing needs.
Specialist knowledge: Freelancers and agencies often have specific skill sets and experiences that can benefit a business. They have worked with various clients and have honed their skills to suit different industries.
The Cost of Using a Freelancer or Marketing Agency
Outsourcing marketing functions to a freelancer or marketing agency can be cost-effective, but it is essential to consider the scope of work, length of the project, and expertise.
The hourly rates charged by digital agencies in the UK can vary widely depending on the type of agency and the services they provide. According to a recent survey by Clutch, the average hourly rate charged by UK digital agencies is £86, although rates can range from £25 to £200 or more per hour. View the breakdown of the types of digital agency services and their hourly rates. Expert Market reports that Taking inflation into account, the average cost of digital marketing per month is £1,065 in 2023. When it comes to the average cost of a specific project or campaign, digital marketing agency pricing comes in at around £2,002.
Freelance UK reports, that the average daily rate for a freelance marketer can range from £250-600, depending on marketing experience and what exactly it is that they offer. Determining an average project fee is difficult because it varies depending on what you, as the client, need. But the crucial thing to remember is that a project fee is fixed. This means you know exactly what you're paying for and what results you can expect in return. It provides clarity and certainty about the costs and deliverables of the project.
For example, when working with me, part-time social media management starts from £500 per month or £6,000 per year.
Full-service retainers, depending on your needs, will start from £1,300 per month or £15,600 annually for part-time support. This includes marketing strategy and planning, content creation, campaign management, reporting, online and offline advertising management, liaison with internal stakeholders and other external suppliers, hands-on execution support, and accountability from a marketing consultant (yours truly!) with extensive experience.
The costs of using a freelancer or marketing agency can be significantly lower than hiring a full-time marketing manager. Additionally, outsourcing to a freelancer or agency allows businesses to benefit from the skills and experiences of multiple professionals without committing to the overhead costs of hiring a full-time employee.
Benefits of Outsourcing Marketing
There are many benefits to outsourcing your marketing instead of hiring a full-time marketing manager. These include:
Access to a breadth of experience and skills: When you outsource your marketing, you gain access to a team of specialists with diverse backgrounds and skill sets. This means that you can tap into a wealth of knowledge and experience that you wouldn't find in hiring one junior member of staff with limited marketing experience.
Flexibility to scale up or down: Outsourcing your marketing also gives you the flexibility to scale up or down as your business needs and budget requires. This means that you can easily adjust your marketing efforts to match your current business needs.
Cost savings: As we discussed earlier, outsourcing your marketing can be a more cost-effective option than hiring a full-time marketing manager. This is because you only pay for the services you need, and you don't have to worry about the additional costs associated with hiring a full-time employee.
The Real Cost of Hiring a Marketing Manager vs Using a Freelancer
Research shows that outsourcing your marketing can be a more cost-effective option than hiring a full-time marketing manager.
According to Upwork's 2021 Future Workforce Pulse Report, 25% of hiring managers said that outsourcing work was more cost-effective than hiring a full-time employee.
According to a report by the Chartered Institute of Marketing, freelance support can provide several advantages to marketing departments and businesses.
Fiverr found 78% of companies will rely on freelancing in 2023 rather than hire staff. In a recent survey conducted among business owners (in partnership with Censuswide), 43% revealed their intentions to bring freelancers on board to bridge the talent gaps within their workforce.
The growing reliance on freelancers is evident, as a remarkable 81% of those surveyed are already leveraging freelance talent to complement their full-time staff and address skill shortages within their organisations. Post-pandemic remote policies make it easier to integrate freelancers.
Moreover, 40% of the respondents acknowledged that engaging independent talent opens up a larger and more diverse talent pool for their recruitment needs, providing a valuable advantage.
Indeed, freelancers have emerged as a vital resource for businesses, offering diverse skills, flexibility, and heightened efficiency, making them an indispensable asset in today's professional landscape.
Here are some cost comparisons to consider:
Salary: The average salary for a marketing manager in the UK is £37,500 per year. This doesn't include the additional costs associated with hiring a full-time employee, such as pension, national insurance contributions, and employee benefits.
Recruitment fees: Recruitment fees can add up quickly, especially if you use a recruitment agency. These fees can range from 15% to 25% of the employee's salary, which means that you could be paying an additional £5,625 to £9,375 just in recruitment fees.
Training: Training is essential for any new employee, and it can be costly. The average cost of training a new employee is £1,208, according to a survey by CIPD.
In comparison, the cost of outsourcing your marketing can vary depending on the services you need and the agency or freelancer you work with. More affordable services are available if you're looking to take baby steps into the advertising digisphere. For example, a copywritten blog post can cost just £150 from a less experienced copywriter, and a paid social media project £326 from a junior freelance marketer, on average. Be mindful, that the more ‘seasoned’ the specialist, the more their services will cost. But that is to be expected because usually, this means that you will get the work done quicker, with a quicker ROI.
One last note about using predetermined ‘marketing packages’.
Initially, it can be really appealing for businesses to go for a package which includes a set amount of posts per week with x, y and z add-ons. However, these won't meaningfully grow your business in the long term, because they are not tailored to your specific business goals, your product and your audience. These ‘packages’ are great to maintain a digital presence, but won’t offer you the growth (or the results your business needs). If your goal is to grow it's wiser to plan investment on a larger scale with a strategy and clear deliverables, with a flexible tactical plan that can be more reactive and altered as and when you are required to meet the demands.
The decision of how to execute your business marketing is a big one, and it's important to consider all of your options. While hiring a full-time marketing manager may be the right choice for some businesses, outsourcing your marketing can be a more cost-effective and flexible option for others.
Outsourcing your marketing can give you access to a breadth of experience and skills, the flexibility to scale up or down as your business needs change, and cost savings compared to hiring a full-time employee. When you consider the real cost of hiring a marketing manager including recruitment fees, training costs, and employee benefits, outsourcing your marketing may be the smarter choice for your business.
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