Budget vs. Reality: The True Cost of Hiring Locally

The true ROI calculation is much more complex 💰

Author

Nathan Fales
July 29, 2025 • Estimated Reading Time: 4 minutes

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I recently compared the cost of hiring a senior operations manager in the US versus Eastern Europe. The difference was staggering.

For the exact same qualifications, experience level, and quality of work, I was looking at $120,000+ annually in the US.

In Serbia? It’s $53,000 - $85,000 per year.

This isn't about cutting corners. It's about understanding the true economics of global talent markets and making smart decisions for your business.

The Real Math Behind Local vs. International Hiring

When most business owners think about hiring internationally, they focus solely on the base salary difference. But the true ROI calculation is much more complex, and much more compelling.

The Full Cost of a US-Based Employee

Let's break down what a $75,000 US employee actually costs:

  • Base Salary: $75,000

  • Payroll Taxes: $5,738 (7.65% for FICA)

  • Benefits: $18,750 (25% of salary for health insurance, 401k, etc.)

  • Office Space: $6,000 ($500/month)

  • Equipment: $2,500 (computer, software, etc.)

  • Recruitment Costs: $15,000 (20% of first-year salary)

  • Training: $5,000

Total First-Year Cost: $127,988

The Full Cost of an International Employee

Now let's look at an equivalent role hired in Eastern Europe:

  • Base Salary: $30,000 ($2,500/month)

  • Recruitment Fee: $4,000 (Go Carpathian flat fee)

  • Equipment: $2,500

  • Compliance/EOR Services: $3,600 ($300/month)

  • Training: $5,000

Total First-Year Cost: $45,100

The Long-Term ROI Advantage

The first-year savings are just the beginning. The real ROI comes from:

  • Productivity Gains: Many Eastern European professionals work while you sleep, creating a 24-hour productivity cycle

  • Scalability: As your team grows, the cost differential compounds dramatically

Beyond the Numbers: Quality Considerations

The biggest misconception about international hiring is that you're sacrificing quality for cost. The data tells a different story:

  • Education Levels: Eastern European countries have some of the highest rates of STEM graduates per capita globally

  • English Proficiency: Countries like Serbia, Romania, and Poland consistently rank in the top 30 worldwide for English proficiency

  • Professional Experience: Many candidates have experience working with international companies and global brands

Case Study: The $250,000 Decision

One of our clients faced a critical decision: hire three US-based operations specialists at $85,000 each or build an international team.

They chose to hire one US-based team lead at $95,000 and five Eastern European specialists at $30,000 each. The result:

  • Same budget ($95,000 + $150,000 = $245,000 vs. $255,000)

  • 67% more output (6 team members vs. 3)

  • 24-hour coverage instead of 8-hour coverage

  • Diverse perspectives from multiple cultural backgrounds

Common Objections and Realities

  • "Communication will be difficult": Most Eastern European professionals are fluent in English and work during US business hours

  • "Management will be harder": With the right tools and processes, remote management is often more efficient than in-person

  • "We'll lose our company culture": International team members often bring fresh perspectives that strengthen culture

How Go Carpathian Helps

We've built our entire model around helping companies create more stable, resilient teams:

  • Our four-funnel recruiting approach finds exceptional talent others miss

  • We show qualified candidates within 2 days of onboarding

  • 50% of our clients hire the first candidate we introduce them to

Ready to build a more stable, resilient team?

Let’s talk!

Until next time,

Nathan