Using some basic facts, figures, and math, it's pretty simple to determine whether using an answering service or hiring a receptionist costs more.
For a growing business, efficiency is everything. And determining which is more efficient—hiring an in-house receptionist or opting for a professional answering service—requires careful consideration. Both options provide unique benefits, but when it comes to cost, answering services often have the edge. Let's delve into the details.
Editor's note: This article was updated in October 2024 with the latest receptionist salary data and clearer insights into the cost comparison between an answering service and an in-house hire.
Understanding the Costs
To evaluate whether an answering service or hiring a receptionist is more cost-effective, several factors must be considered.
In-House Receptionist Costs
Employing a receptionist involves more than just salary expenses:
- Salary: As reported by Glassdoor, the average salary for a receptionist in the U.S. ranges from $33,000 to $46,000 annually, with a median of $38,870. ZipRecruiter cites an hourly rate near $17 for front desk receptionists, equating to $2700–$3,800 monthly for full-time work.
- Benefits: Costs of health insurance, retirement contributions, and paid time off can significantly increase total expenses.
- Training: Initial training and ongoing professional development are necessary for maintaining high-quality services.
- Equipment and Space: Providing a workstation, phone systems, and other equipment adds to the costs.
Answering Service Costs
Answering services present a streamlined alternative:
- Cost per Call: Many services charge approximately $1.50 per minute, with 200 calls per month totaling around $300.
- No Additional Overheads: Absence of costs for benefits, training, or equipment makes this a straightforward expense.
Beyond Cost-Effectiveness
While cost is a crucial factor, other considerations matter when choosing between an answering service and an in-house receptionist.
Flexibility and Availability
A receptionist is restricted by typical working hours and may not be available during breaks or after-hours. An answering service operates 24/7, ensuring no call goes unanswered, preventing missed opportunities like critical customer inquiries or potential leads.
Professionalism and Consistency
Answering services employ trained professionals adept at managing calls efficiently. They maintain consistent service even during high call volumes, reinforcing your business's professional image at all times.
Combining Both Approaches
For some businesses, a hybrid approach utilizing both an answering service and an in-house receptionist is ideal. An in-house receptionist can manage office tasks and high-priority calls, while the answering service handles overflow and after-hours calls, ensuring comprehensive coverage without overextending resources.
The Choice Is Yours
When evaluating the cost-effectiveness of an answering service versus a receptionist, it's evident that an answering service frequently offers a more economical solution. Consider this:
An in-house receptionist may cost $2700–$3,800 per month.
An answering service handling comparable call volumes might cost around $300 per month.
This means an answering service can be 1/10th or less the cost of an in-house employee!
Many answering services offer packages tailored to various call volumes. At Sound Telecom, our competitively priced services range from $47–$296/month (excluding overage minutes), offering additional savings. Learn more about our pricing.