Comparing employment costs isn’t just about base salary. Hiring in the US involves substantial additional expenses like health insurance, payroll taxes, equipment, and recruiting overhead. Outsourcing your staff shifts these variable overheads into a single, predictable monthly fee, though key factors like local benefits and provider management fees still need to be factored in.

To compare fairly, evaluate the total cost of roles with equivalent skills, responsibilities, and hours.

What Does a US Employee Really Cost?

Data from the U.S. Bureau of Labor Statistics shows the breakdown of total employee compensation costs:

• 69.9% Wages and base salary
• 30.1% Benefits and statutory costs

Additional overhead: Recruitment, equipment, software, workspace, and onboarding

What Should an Outsourcing Cost Include?

Established offshore staffing providers typically charges fixed monthly management fees for their services.

Instead of handling variable expenses, you pay a single invoice covering:

• Base salary and local government-mandated benefits.
• Recruitment, background checks, and screening.
• HR management, payroll processing, and local labour compliance.
• IT infrastructure, security, and technical support.
• Office facilities for dedicated teams.

This model provides a more predictable cash flow and removes unexpected expenses common with local US hiring.

Tip: Request an estimated breakdown of expenses 

Comparing Local and Offshore Staffing Costs Fairly

Comparing a US base salary directly to an all-inclusive offshore fee creates an apples-to-oranges comparison. A US salary omits substantial hidden overheads like payroll taxes, healthcare, IT, and recruitment, whereas an offshore fee covers all of these in a single figure. Accounting for these total employment costs shows that offshore staffing typically delivers 50% to 70% in operational savings.

How key expenses align:

Tip: Compare first-year costs alongside ongoing expenses, as initial setup or recruitment fees may apply.

With a clear understanding of the cost dynamics, the next step is identifying which roles actually benefit from this shift.

When Is Offshore Staffing Worth Considering?

Offshore staffing suits remote-friendly roles with clear responsibilities where local labor costs are prohibitive.

For example, an offshore finance specialist can manage bookkeeping, reconciliations, and reporting, freeing local teams for high-level strategy.

Other common offshore functions include administration, customer support, sales support, marketing, recruitment, IT, and data management.

Offshore staffing can expand overall capacity without replacing existing US staff.

Roles requiring a physical presence or local relationships should remain on-site.

Do Not Compare on Price Alone

Evaluate candidate quality, onboarding support, and provider oversight alongside price.

Offshore employees require clear direction and integration. You remain responsible for daily feedback, goals, and performance management.

An offshore partner handles HR and administration, but direct management stays with your leadership team.

Focus on the total value: cost, work quality, and management effort combined.

How Deployed Helps You Build an Offshore Team

Understanding the costs is the first step; executing the strategy is the second. 

Deployed helps businesses navigate the transition from a purely local workforce to a highly efficient, globally distributed team.

Rather than offering a standard outsourcing service, Deployed works with you to define suitable offshore roles, find candidates that fit your specific requirements, and build dedicated offshore teams in the Philippines. 

We manage the HR, compliance, and infrastructure, allowing you to integrate the new staff directly into your existing team and systems as if they were sitting in your own office.

Compare the cost of your next role with an offshore alternative.

Speak to Deployed today to get a clear breakdown for your business.