The short version
- Fully-loaded US employment typically runs well above base salary once taxes, benefits and overhead are counted.
- Recruiting cost and turnover should be amortized into the annual figure — most teams skip this.
- Managed offshore staffing consolidates most of those line items into one rate.
- Offshore loses when the role needs physical presence, domestic licensure or same-desk collaboration.
| Cost line | US employee | Managed offshore professional |
|---|---|---|
| Base compensation | Market salary | Included in rate |
| Employer payroll taxes | Yours | Included |
| Health benefits & insurance | Yours | Included |
| Paid time off & holidays | Yours | Managed by provider |
| Equipment & workspace | Yours | Provided by professional |
| Recruiting & agency fees | Yours, per hire | $250 finder fee — waived on 4+ month commitments |
| Onboarding & training | Yours to build | Structured; 10 hours included on 4+ month commitments |
| Performance management | Your manager's time | Coaching and QA included |
| Turnover / replacement | Full re-hire cost | 30-day replacement guarantee |
Build the fully-loaded number first
Take base salary. Add employer payroll taxes, health and other benefits, equipment and software seats, and your share of workspace cost. Then amortize recruiting cost across expected tenure, and add the expected cost of one vacancy at your historical turnover rate.
That total — not base salary — is what you compare against an offshore rate. Most teams are surprised by how much the last two line items move the number.
Don't forget the management line
Both models consume management time, but not equally. A poorly vetted, untrained hire — onshore or offshore — can consume a third of a manager's week. That's real payroll spend hiding inside someone else's salary line.
This is the single biggest argument for paying above the cheapest offshore rate: vetting and training buy back your manager's calendar.
Where offshore genuinely doesn't win
- Roles requiring physical presence, site access or in-person client meetings
- Regulated or licensed work with domestic-residency requirements
- Highly collaborative, ambiguous work in early-stage product design
- Any role where a four-hour overlap window is not enough — though our professionals commonly work US hours
A realistic hybrid
The strongest structure we see isn't all-offshore. It's a US-based owner or manager for the role, with offshore professionals executing the repeatable 70% — inbox, scheduling, CRM hygiene, reporting, first-line customer service, bookkeeping support.
That keeps judgment and relationships domestic while moving throughput to a cost base that lets you hire two seats instead of half of one.
How to pilot without committing
Start fractional. Pick one measurable workflow, run it for a month at hourly, and measure output against the manager hours it consumes. Month-to-month is available from day one, so a pilot doesn't require a contract.
If the numbers work, convert to a dedicated monthly placement, which prices roughly 15% below the equivalent hourly rate.
Frequently asked questions
- How much does a US employee really cost beyond salary?
- Fully-loaded cost includes employer payroll taxes, health and other benefits, equipment and software, workspace, amortized recruiting cost and expected turnover. That total is meaningfully higher than base salary and is the correct figure to compare against an offshore rate.
- How much does managed offshore staffing cost?
- Fractional hourly support starts at $19/hr for the Foundational tier and $25/hr for Growth. Dedicated full-time placement is billed as a flat monthly rate per professional, roughly 15% below the equivalent hourly rate.
- Do offshore professionals work US business hours?
- Yes — placements are commonly scheduled to your working hours, with overlap requirements agreed before placement so coverage matches how your team actually operates.
- What roles are the best candidates for offshore staffing?
- Customer service, executive and administrative support, operations and scheduling, bookkeeping support, recruiting coordination and marketing support are the most common. Roles requiring physical presence or domestic licensure are not good fits.
Want a straight answer for your situation?
Tell us the role and the hours. We'll tell you what it costs, how fast we can fill it, and whether you'd be better off hiring locally.