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Automation vs Hiring: An ROI Comparison

Should you hire more people or invest in automation? We break down the numbers.

AtoB.digital Team
January 1, 2026
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The Growth Dilemma


Every growing business faces this question: should we hire more people to handle increased workload, or invest in automation? The answer depends on your specific situation, but the numbers often favor automation.


The True Cost of Hiring


When you hire a new employee, the costs include:

  • Salary: $50,000-$100,000+ annually
  • Benefits: 20-30% of salary
  • Recruitment: $5,000-$15,000
  • Training: 2-3 months of reduced productivity
  • Management: Time from existing team
  • Turnover risk: Start over if they leave

  • **Total first-year cost**: Often $80,000-$150,000+


    The Cost of Automation


    A typical automation project might include:

  • Setup: $5,000-$25,000 one-time
  • Tools: $100-$500/month
  • Maintenance: $500-$2,000/month

  • **Total first-year cost**: $10,000-$50,000


    Comparing Outputs


    Hiring

  • Limited to 40 hours/week
  • Variable quality
  • Needs vacation and sick time
  • Can handle complex judgment calls

  • Automation

  • Works 24/7/365
  • Consistent quality
  • No time off needed
  • Best for repetitive tasks

  • When to Hire vs. Automate


    Hire When:

  • Tasks require complex judgment
  • Customer relationships need personal touch
  • Work is highly variable and unpredictable
  • Strategic thinking is required

  • Automate When:

  • Tasks are repetitive and rule-based
  • Volume is high and growing
  • Speed matters
  • Consistency is critical

  • The Hybrid Approach


    The best strategy is often a combination:

  • Automate repetitive tasks
  • Hire for strategic and relationship roles
  • Use automation to make your team more effective

  • ROI Example


    **Scenario**: You need to handle 500 lead follow-ups monthly


    **Option A (Hire)**:

  • Cost: $60,000/year
  • Capacity: ~500 leads/month
  • Response time: Hours to days

  • **Option B (Automate)**:

  • Cost: $15,000 first year
  • Capacity: Unlimited
  • Response time: Minutes

  • Automation delivers 4x the ROI in this scenario.


    Conclusion


    Automation isn't about replacing people—it's about amplifying their impact. By automating repetitive tasks, you free your team to focus on work that truly requires human creativity and judgment.


    Ready to calculate your automation ROI? Let's talk.


    AtoB.digital Team

    The AtoB.digital team helps businesses automate their workflows and scale smarter.

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