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Cost of Hiring vs Outsourcing Employees

Cost of Hiring vs Outsourcing Employees
Key Takeaways
- A direct hire's true cost includes GOSI, end-of-service, and idle time between projects.
- Outsourcing bundles those costs into a single, predictable rate.
- The comparison only makes sense over the role's realistic duration, not a single month.
What a direct hire actually costs
A base salary is only part of the number. GOSI contributions, annual leave, end-of-service benefits, and — for project-based work — the idle time a permanent employee costs you between assignments all belong in the real comparison.
What outsourcing bundles together
An outsourced rate typically folds all of that into one predictable figure, and it stops the moment you no longer need the role — there's no idle-time cost to carry.
The duration matters more than the monthly rate
A supplied worker's monthly rate is often higher than a direct hire's salary alone. Over a genuinely short, defined engagement that's still usually cheaper once idle time and offboarding costs are counted; over a multi-year, continuous role, direct hiring often wins.
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