Comparing a US salary with an offshore hourly rate is the most common mistake in staffing math. Both numbers leave out real costs. Compare the full cost of each, for the same hours of work.
The full cost of a US hire
A salary is only the start. On top of it come benefits, payroll taxes and the cost of recruiting. Our savings calculator adds 30% to the salary to cover these, the same rule the original employmagic calculator used. For comparison, the US Bureau of Labor Statistics puts the full cost of employee compensation at about 1.43 times wages for private industry overall (June 2026), so 30% is on the cautious side.
So a customer service representative at the US median of $44,770 a year (US Bureau of Labor Statistics, May 2025) costs $58,201 a year in total.
The full cost of an offshore professional
Price offshore help for the same hours: 40 hours a week is 2,080 hours a year. Then add what the rate may not include:
- Recruiting and vetting. Who finds the person, and who checks their work history?
- Onboarding and training. How long until they are useful, and whose time does that take?
- Management. Who handles schedules, quality and day to day questions?
- Replacement. If the fit is wrong, who finds the next person, and does it cost you again?
- Security. Do they work inside your systems, with access you control and can end?
A low rate with all of these left to you can cost more than a higher rate that includes them.
A worked example
For one full time customer service seat:
- US hire: $58,201 a year. That is the $44,770 salary plus $13,431 for benefits, payroll taxes and recruiting. Onboarding, management and any replacement take your team's time on top.
- employmagic specialist: $19,760 a year. That is $9.50 an hour for 2,080 hours, with recruiting, onboarding, management and replacement handled by employmagic.
The difference is about $38,500 a year, or 66%, for one seat. Savings vary by role; the savings calculator shows each one.
Questions to ask any provider
- Is the rate for the same hours as a full time US employee?
- What happens if the first match is not right?
- Who manages the person day to day?
- Does the person work inside my own tools?
- How quickly can they start?
Our answers: the calculator prices 2,080 hours a year. If the first placement doesn't deliver in month one, you don't pay for that month, and if a specialist isn't working out at any point, we'll have a replacement ready (each replacement carries our standard onboarding fee). You direct the work and set priorities; we handle recruiting, contracts, pay, replacement and day to day management, such as schedules, attendance and quality checks. Our specialists work inside your own tools, and most start about a week after your intro call.