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The cost of a hire includes more than salary. A useful comparison accounts for recruitment, employer costs, payment administration, tools and the time needed to onboard and manage the person. Offshore hiring can change these costs, but it does not make them disappear.
Compare equivalent roles, hours and responsibilities. Then separate cash expenditure from internal time and uncertain business outcomes. This gives you a hiring budget you can use rather than a headline savings percentage.
Build a comparable hiring budget
Use a twelve-month period for both options. Record what is included in each quote and who pays for anything outside it.
| Cost category | Domestic hire | Offshore hire |
|---|---|---|
| Compensation | Salary or wages, plus agreed variable pay | Agreed compensation and variable pay; record currency and hours |
| Employer costs | Applicable taxes, insurance, benefits and other obligations | Costs applicable to the country and engagement arrangement |
| Recruitment | Advertising, assessments, recruiter fees and external checks | Placement fee, sourcing charge or the recruitment element of a staffing proposal |
| Payment and administration | Payroll and related administration | Payment processing, payroll, currency conversion or employer-of-record charges, where used |
| Tools and equipment | Required hardware, software and access | Equivalent hardware, software, access and any connectivity provision |
| Onboarding and management | Training, review and supervision | Training, review, supervision and any additional coordination |
Enter each cash cost once. A staffing quote may already include compensation and payroll administration. A benefits estimate may already include some employer costs. Check the components before adding separate lines.
Annual salary usually already pays the employee during paid leave. Do not add those wages again; model additional cover separately if you will actually pay for it. Allocate shared software only where the new hire changes the cost or where you are deliberately comparing allocated overhead.
Keep three different costs visible
First-year cash budget: compensation plus applicable employer costs, recruitment, administration, tools and other incremental spending. Show one-time charges separately from recurring expenses.
Internal capacity: hours spent interviewing, onboarding and reviewing work. Record these separately from new cash spending unless they require additional paid capacity. This helps identify the management commitment without presenting an allocation as another invoice.
Business outcomes: delayed projects, slower responses or missed sales activity. Describe the operational exposure, but do not treat potential pipeline as booked revenue or assume an unfilled position caused every missed opportunity.
These distinctions matter for startups as well as established businesses. A role can be affordable on salary and still require substantial recruitment cash and management time at the start.
Understand what you are buying
With direct recruitment, you hire a person for your own team and arrange the ongoing employment or contracting administration. A recruiter may help you source and assess that person without providing payroll or management afterwards.
With staffing, the provider may include ongoing administration in a recurring charge while your team directs the work. With a managed outsourced service, the provider may also supervise delivery. Service labels vary, so use the actual contract to establish responsibilities.
International hiring does not by itself remove employer obligations. Confirm the arrangement and the applicable costs before approving the budget.
What does hiring through Somewhere cost?
Somewhere's Direct Hire service publishes a one-time placement fee of 25–35% of the hire's first-year salary. A refundable deposit is credited towards the final invoice; confirm its amount, refund conditions and payment timing in your proposal.
Under Direct Hire, your business handles payroll, onboarding, compliance and day-to-day management. Optional services should be quoted separately. The placement fee is a recruitment expense, not an all-inclusive employment price.
Here is an illustration using an assumed monthly salary of US$2,000. It is not a salary benchmark, quote or promised saving.
| Item | At a 25% fee | At a 35% fee |
|---|---|---|
| Annual salary | US$24,000 | US$24,000 |
| One-time placement fee | US$6,000 | US$8,400 |
| First-year subtotal | US$30,000 | US$32,400 |
| Applicable employer costs, administration and tools | Add your actual costs | Add your actual costs |
Do not add the credited deposit again. The same placement fee is not an annual subscription; a new search or replacement outside the agreement may have separate terms. Record ongoing expenses in subsequent-year budgets.
Countries, working hours and hiring protection
Somewhere recruits across markets including Latin America, the Philippines and South Africa. Candidate availability, compensation, required experience and working hours all affect the search. Ask for a role-specific proposal and assess the candidate's ability to work the schedule you need.
Somewhere publishes a six-month replacement guarantee for Direct Hire, with one free replacement shown in its pricing comparison. Confirm the written eligibility and process. This is replacement protection, not a guarantee of revenue, productivity or a particular cost saving. Current pricing and service options.
Make the decision from a complete proposal
Before proceeding, check that both options cover the same job, hours, seniority and management responsibilities. Compare the first-year cash requirement and ongoing monthly cost. Assign an onboarding owner and agree how performance will be reviewed.
If you are considering a dedicated remote hire, ask Somewhere for a Direct Hire proposal. Bring the role brief and your cost worksheet so the recruitment fee and ongoing responsibilities are clear from the start.
Related guides: Hire a remote bookkeeper · Compare remote hiring services for startups · Assess an offshore SDR or BDR.
