Want to find the true price tag on hiring an in-house Marketing Manager?
If you think it's the figure you agreed on during the job offer negotiation, think again!
The journey to filling an in-house position doesn't end with the salary package.
In this blog, we're going on a deep dive to uncover the actual cost of hiring a Marketing Manager. *
Spoiler alert - it's more than just the £30,000 you're planning to offer as a salary.
Are there additional costs to the salary?
First things first, let's get this straight - the base salary isn't the be-all and end-all of hiring.
In fact, when you decide to recruit a new Marketing Manager, the additional costs you need to cover might make you do a double take.
What are the additional costs of hiring in-house?
The 11 hidden costs of hiring in-house
1. Employer's National Insurance Contributions (NICs)
If an employee earns more than the primary threshold (which, as of 2021 was £170 per week), the employer will have to make NICs, which is 13.8% (2023) on the amount above the threshold.
Example:
£30,000 salary = £2884.20
2. Pension costs
Under the auto-enrolment pension scheme in the UK, employers are required to pay into their employees' pension pots. The current minimum contribution from the employer is 3% of the employee's qualifying earnings.
Example:
£30,000 salary = £300
3. Equipment costs
You'll need to equip your Marketing Manager to do their job. Do they need a new laptop, updated software licenses, or a smartphone to keep them connected? I would consider this a necessary investment rather than a casual expense.
Example:
Desktop setup = £2,005
Software stack = £326 per month
- SEO - Ahrefs = £79
- Graphic Design - Adobe = £52
- Imagery - FreePik = £13
- Email - MailChimp = £77 *5000 contacts
- Automation - Zapier = £16
- Social - HootSuite = £89
4. Recruitment Costs
How much does it cost to find the right person for the job? Advertisements, agency fees, reference checks, and interviews are all part and parcel of the recruitment process. And these add up!
Example:
Salary = £30,000
Recruitment fee (Low 15%) = £4,500
5. Training & Development
Once you've found the right person, you'll need to factor in training and development costs. Want your Marketing Manager to take the lead on the latest digital strategies? That might require a course or two!
Example:
Digital marketing campaign planning (CIM) = £475
6. Workplace Necessities
This covers everything from the corner of the office where they'll work, the utilities they'll use, to the coffee they'll sip while brainstorming the next big campaign.
No example: Spend what you want on furniture and coffee!
7. Insuring
As an employer, you need Employers' Liability Insurance in case your employee falls ill or gets injured because of their work, and it is a legal requirement in the UK if the business has employees.
Example:
Cost range = (£60- £500)
8. Sick Pay and Paternity Leave
What happens when your Marketing Manager calls in sick? Or when they plan to start a family? Statutory Sick Pay and Maternity/Paternity Pay come into play here.
If an employee is off sick for more than 4 days, they might be entitled to Statutory Sick Pay, which the employer will have to cover.
The statutory weekly rate of Paternity Pay is £172.48, or 90% of your average weekly earnings (whichever is lower).
Statutory Maternity Pay is payable for up to 39 weeks, with the employer covering at least the first 6 weeks at 90% of the employee's average weekly earnings. Thereafter, it's either 90% of their weekly earnings or the statutory flat rate (£172.48), whichever is lower. Paternity pay has a similar structure.
9. Holiday Pay
Full-time employees in the UK are entitled to at least 5.6 weeks (28 days) of paid holiday per year. It can be hard to maintain consistency if you employ a small team with different skills or a solo marketer.
Example:
Salary = £30,000
Holiday pay = £3,229.91
10. Employee benefits
Time to sweeten the deal and keep your employees engaged and motivated! They can range from bonuses, events, and gym memberships to health insurance and travel expenses.
Example:
Gym membership (guide price) = £45
Health insurance (guide price) = £200
What's the alternative to hiring in-house marketers?
1. Hire virtual employees
Try hiring virtual employees directly or through a recruitment agency specialising in no-commitment contract length.
2. Hire agency
A model that has been around for years. Though often expensive and lacking internal integration, marketing agencies have a wide range of skills and capabilities.
Better yet, they absorb many hidden fees such as software subscriptions and have the delivery regardless of if staff are ill or on holiday.
3. Virtual in-house agency
The Slap & Tickle Marketing model we shall call this. Companies can hire a virtual marketing manager. You can even give them company emails, CRM accounts and have them attend your sales meetings.
Unlike virtual employees, they have access to all the skills and capabilities marketing agency would provide and absorb all those recruitment overheads.
Ready to meet a virtual marketing manager? -> Book meeting
Wrapping it up
So, there you have it! The real cost of hiring a Marketing Manager goes far beyond the salary package. With all these factors in mind, hiring an in-house Marketing Manager might be a more significant investment than you thought. But remember, with the right person on board, it's an investment that can yield immeasurable returns for your business.
But if the commitment is just too much, you've always got virtual.
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