In this blog we’ll discuss the hidden costs of hiring a designer. At first it can be easy to take the initial step of breaking down the value of a freelancer or studio in comparison to the hourly wage of hiring internally.
However, as our research shows, there are actually a range of hidden costs associated with hiring internally that will keep that hourly rate for your internal designer climbing higher and higher.
1. Training
Continuous training and development are essential to keep your internal designers updated with the latest trends and technologies, which incurs ongoing costs.
Workshops, conferences, and courses are necessary for maintaining expertise and innovation, often involving significant expenses. Without consistent training, designers may fall behind industry standards, impacting the quality of their work. Thus, professional development remains a costly commitment.
2. Recruitment and HR Costs
Recruiting internal designers involves expenses such as advertising, interviewing, and onboarding, along with ongoing HR management.
If they don’t pass probation, these costs increase further due to the need to re-advertise, re-interview, and re-onboard new candidates. Additionally, the time and resources spent during the probation period are lost, adding to the overall financial burden.
3. Annual and Sickness Leave
Paid time off, including annual and sickness leave, can disrupt project timelines and productivity, leading to additional costs.
When designers are absent, deadlines can be missed, and temporary replacements or overtime for other staff may be required. These disruptions and additional measures can significantly increase operational expenses and impact the overall efficiency of the team.
4. Software and Tools
Internal designers require licensed software and tools, which can be expensive to purchase and maintain over time.
For example, the Adobe Creative Suite involves significant annual fees. These costs add up, especially with regular updates and new versions. Ensuring all necessary tools are up-to-date is essential, further contributing to the overall financial burden on the company.
5. Equipment and Workspace
Providing a suitable workspace and necessary equipment for internal designers involves upfront costs and ongoing maintenance.
Initial expenses include office setup, furniture, and specialized equipment like high-end computers and design tablets. Ongoing maintenance includes repairs, upgrades, and ensuring ergonomic standards are met. These investments are crucial to creating a productive work environment but can be significant financial commitments for the company over time.
6. Bonuses and Wage Rises
In addition to base salaries, internal designers often expect bonuses and wage increases to stay motivated and competitive in the job market.
These incentives are essential for retaining talented designers and keeping them engaged.
However, meeting these financial expectations adds to the overall compensation package, increasing the financial burden on the company. Balancing competitive compensation with budgetary constraints is crucial for maintaining a motivated and satisfied design team.
7. Management Overhead
Managing internal designers requires supervision, coordination, and administrative efforts, adding to operational overhead.
This includes overseeing project timelines, providing feedback, and ensuring collaboration among team members.
Additionally, addressing any issues or conflicts that arise requires time and resources. Effectively managing designers is crucial for maintaining productivity and quality standards but adds to the administrative workload and operational costs of the company.
Summary
Bringing all of those costs into the equation, it really highlights how much time, commitment and capital it costs to employ an internal designer.
Futher empahasising this is that The Talent Insight Group estimate that the average cost of filling a vacancy on your team is £6,125 (View source).
With SaltedRidge you’ll be paying one monthly cost that ensures you don’t need to do any hiring, that you’re never left hanging during annual leave, that you never need to buy laptops or software and you wont need to organise training.
We’ll handle all of that internally and you’ll get high-quality, consistent design from a dedicated team team.We’re here should you want to unlock your personal design studio. Visit our ‘How it works’ page here to find out more.
