Compare Outsourced Marketing with In-House: The HR Perspective

Compare Outsourced Marketing with In-House: The HR Perspective
Marketing Agency B2B Marketing Agency

I’ve been in HR for 38 years and have worked in marketing for 14. When it comes to addressing your company's marketing needs, there are a few different options to consider. One of the main choices you'll need to make is whether to pursue in-house hiring or to engage a marketing agency. While both options have their pros and cons, working with an agency can often provide cost efficiencies and other benefits that are worth considering to compare outsourced marketing with in-house.

The Advantages of Working with a B2B Marketing Agency 

One of the main advantages of working with a B2B marketing agency is cost savings. Agencies have economies of scale and may be able to offer services at a lower cost than building and maintaining an in-house team. 

The money and time that goes into hiring and training new employees is not insignificant. On average, it can cost anywhere from 30% to 150% of the new employee's annual salary to recruit and hire them.

It can take several weeks or even months to fully train a new employee, during which they may not be fully productive. According to some estimates, it can take up to 8 months for a new employee to reach full productivity.

Onboarding a new employee can also place an additional workload on current employees, who may have to take on additional responsibilities to cover for the new employee during their training period. This can lead to increased stress and burnout for current employees.

There is always a risk that a newly trained employee will leave the company soon after completing their training. The current statistics show that as many as 33% leave within the first 6 months.  According to some estimates, the cost of losing an employee can be as high as 2x - 3x their annual salary.

Reliability and consistency:  working with an agency

Finding the right Agency to outsource your marketing should be approached with as much diligence as hiring in-house. When looking for a quality marketing agency, there are several key factors to consider:

Look for an agency that has a proven track record of delivering results in your specific industry or market. Look at the agency's portfolio, case studies, and testimonials to get a sense of their expertise and the types of campaigns they have successfully executed in the past.

It's important to find an agency that shares your values and has a culture that aligns with your business. This will help ensure a smooth working relationship and will help to produce a successful outcome that aligns with your business goals and target audience. Unlike checking a candidate’s references who are limited in what they can really share, you can get the hard truths from an agency’s clients. 

Contrary to popular belief, working with an agency does not have to compromise continuity and cohesion in your marketing efforts.

Compare Outsourced Marketing Skills with In-house 

In these uncertain times, many companies are facing the tough decision of downsizing their in-house teams, and marketing budgets often bear the brunt of these cuts. This can result in significant reductions in the marketing staff, leaving the marketing department with a limited set of skills and resources to effectively execute successful and strategic campaigns, at the exact time when the drive for new business is vital. 

B2B marketing agencies have a large pool of talent to draw from, providing you with access to a wider range of skills and expertise that an in-house hiring budget would most likely not stretch to. Additionally, marketing agencies have a team of professionals working on your project, which can help you get things done more quickly than if you were relying on a single in-house employee. 

The most successful agencies directly employ in-house teams of professionals ranging from B2B digital marketing specialists, Account Managers and Directors, Marketing Strategists, Designers, Content writers, RevOps, PPC, and SEO teams.  The exposure the marketing professionals have to continual training and working across the many teams, develops agile and up-to-date marketers who will work as a ‘marketing in loco’ team for all your marketing needs; another benefit of using agencies. 

Agencies Reduce Your Risk

A final key benefit of working with a marketing agency is reduced risk. If you're not satisfied with the work of an in-house employee, it can be costly and time-consuming to let them go and hire a replacement. With a marketing agency, you can simply end the contract if you're not happy with the work. This can help reduce risk and give you peace of mind, especially during a recession when budget constraints may be tight.

Let’s Sum it Up

In summary, when it comes to addressing a company's marketing needs, there are options to consider when comparing outsourced marketing with in-house. The former can provide many benefits such as cost efficiencies and access to a wider range of skills and expertise. 

Agencies have economies of scale, which means they can offer services at a lower cost than building and maintaining an in-house team. This can be especially helpful during a recession when budget constraints may be tight. Additionally, working with a marketing agency allows you to be flexible with your budget and resources, marketing agencies can help you get things done more quickly with their wider range of tools and expertise at their fingertips.  So, if you're currently deciding between in-house hiring and working with an agency, don't overlook the many benefits that agencies can provide.


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Helen Nolan

by Helen Nolan on March 13, 2023

As Chief People Officer for Penguin Strategies, Helen is responsible for the management of Penguin Strategies Human Resources in the US and Israel. As well as contributing to business strategy, Helen oversees the recruitment, training and management development, alongside her responsibilities for employee and labour relation. Helen enjoys the transparent and collaborative spirit at Penguin Strategies. ‘It really helps us to understand the needs of our employees and share the best ideas across the company’.