Does an Answering Service Cost More Than a Receptionist?
Efficiently running a business is a top priority for every business owner in today’s economy. Companies of all sizes must ensure that their customers receive professional, quality service, without missing phone calls, while simultaneously protecting their profitability.
In this article, we will take a closer look at answering service costs to see which one makes the most financial sense for your business. One key area that is often debated among business owners is how to handle incoming calls. There are two popular options for answering phone calls: using a professional answering service or hiring an in-house receptionist.
Answering Service Pricing Comparison
Phone answering services, aka virtual receptionist services, have been around for many years and are a popular choice among small businesses. They are a form of remote telephone answering service, which means that inbound calls are answered by live operators who are based off-site. In addition to answering calls, live answering services can do a lot for your business, such as capturing leads, taking messages, scheduling appointments and more.
While in-house receptionists have been the traditional approach to fielding phone calls, answering services are presenting an alternative. The biggest factor in choosing between the two? Cost.
Average Cost of an Answering Service
The average cost of an answering service varies based on your specific needs. Let’s look at an answering service price breakdown for the average AnswerHero™ customer. The average customer uses between 250 and 500 call answering service minutes per month, costing between $249 and $449. This represents, at an average call duration of 1.5 minutes, between 166 and 333 calls per month. Or, put another way, between 8 and 17 calls per day.
These call minutes typically cover the number of business phone calls many small companies receive on a daily basis. Plus, answering service pricing is limited only to the monthly minutes you use. You don’t have to pay or worry about things like insurance, worker’s comp, 401k, payroll taxes and night differentials.
Average Cost of a Full-Time Receptionist
In 2024, the median salary for an in-house receptionist is $40,163. While this number on its own is an expense your company is responsible for, you also must consider costs like benefits, insurance, taxes and overhead to cover your new hire. Beyond these payroll costs, employers have to consider other expenses for new hires, like recruiting costs, employee screenings and training.
As soon as you hire an in-house receptionist, you also accept the risk of employee turnover — which is expensive when it happens. Gallup’s State of the Global Workforce: 2021 Report found that an exiting employee can cost anywhere from one-half to two times the employee’s salary. Looking at the average cost of your in-house receptionist, the lowest possible loss is around $20,000.
Additionally, if you receive a high call volume or your business is open 24 hours a day, you will need to hire multiple full-time equivalent (FTE) employees to cover all the shifts – which can quickly become cost-prohibitive, especially for small businesses. In today’s labor market with a constant drumbeat of news stories about inflation and wage increases, this is one place where the average small business can save money while still providing excellent customer service to their clients.
Hidden Costs and Hidden Savings
There are several other factors and considerations that come into play when deciding when comparing virtual receptionist pricing and the cost of hiring an in-house receptionist. Here is a quick overview of some of the hidden costs and potential savings associated with each option:
A full-time receptionist can cost your business money by:
- Being unable to answer the phone 24/7/365
- Requiring up to two weeks of training
- Taking up to two weeks of paid vacation per year, where they will not be answering your phone
- Having negative interactions with your clients
An answering service can help you save money by:
- Being available 24/7/365 so you’ll never miss after-hours calls
- Being ready on your very first day to answer your calls in a polite, professional and timely manner
- Being available after-hours, on weekends and during holidays
- Being experienced professionals who receive extensive and ongoing training
Answering Service vs. Receptionist: The Final Verdict
As you can see, there is a big difference in the average cost of hiring an in-house receptionist and answering service pricing. When you factor in all the additional costs associated with keeping a full-time receptionist, it quickly becomes apparent that an answering service is a more cost-effective solution, especially for small to medium-sized businesses.
At its simplest, the fully bilingual answering service from AnswerHero™ only costs between $249 and $449 per month on average, while having an in-house receptionist costs about $3,347 per month. And, when you factor in things like benefits, paid time off, worker’s compensation, payroll taxes and the cost of recruiting and training new employees — the question is, is an answering service worth it? Looking at the numbers alone, absolutely.
Maximize Your Savings While Answering Every Call
Connecting with your customers over the phone is important to business growth. When hiring an in-person receptionist doesn’t fit your budget, answering services offer a solution. AnswerHero™ helps you answer every call, every time, without the recruiting, training and payroll costs that come with a new hire. Meet your ever-changing needs with our contract-free plans and keep up with a constantly ringing phone line.
Ready to get started with AnswerHero™? Get in touch with our team today.
