HR outsourcing vs an in-house HR specialist – which is more cost-effective

This is one of the most common questions I hear from business owners: is it better to hire someone full-time, or outsource HR and payroll? The answer depends mainly on the number of employees, the specifics of the company and how much you want to pay for peace of mind and reliable service.

The real cost of a full-time HR employee

Many employers only look at the gross salary. In reality, the total employer cost for a 5,000 PLN gross salary is around 6,000–6,300 PLN per month once you add the employer-side ZUS contributions. On top of that:

• Annual leave – the employee is paid but not working
• Sick leave – the employer covers the first 33 days of absence per year
• Recruitment costs – several to tens of thousands of PLN with each turnover
• Equipment, HR software, training and keeping knowledge up to date
• Risk – one employee's mistakes without external verification

Outsourcing costs for comparison

For a company employing 10 people, the monthly cost of outsourcing typically falls between 800–1,800 PLN net, depending on the scope of service. For 20 employees – around 1,500–3,500 PLN net. The difference compared to a full-time employee is significant.

When outsourcing is clearly more advantageous

• The company employs up to around 30–40 people on similar types of contracts
• The number of employees changes seasonally – you pay proportionally to the work done
• You don't want to manage another person and risk prolonged absence (illness, maternity leave)
• You want certainty that regulatory changes are implemented immediately
• You need access to expert knowledge without paying for a full-time position

When an in-house specialist may make sense

For larger companies (more than 50–80 employees), complex employment structures or a need for the permanent physical presence of an HR department in the office – hiring an in-house specialist becomes more justifiable. A hybrid model often works well too: an in-house HR contact for employees, with payroll and ZUS settlements handled externally.

How I can help

If you'd like to compare the concrete cost of your current model with an outsourcing quote for your company – write or call. I'll prepare an estimate with no obligation.