This is a series of 5 articles exploring customer communication strategies for small businesses, focusing on answering services:
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Why Small Businesses Need an Answering Service?: Discover the importance and benefits of answering services.
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(This Article) Outsourcing vs. In-house Live Receptionists: What is live receptionists? Should you outsource or hire in-house?
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Automated Phone Answering Systems (Interactive Voice Response IVR vs. Voice AI Agents): What is automated answering service? Should you use Interactive Voice Response or Voice AI agents?
-
Decision: Should My Small Businesses Use Live Receptionists or Automated Answering Services?: You’ve learned all about answering services from our series. Now it’s time to decide which type of service is best for your business.
-
OpenAI vs. Human vs. Voice AI: A Cost Comparison: Wonder if you should switch to the latest voice AI technology? Let’s take a look at the real costs.
What Are Live Receptionists for Businesses?
For small businesses, customer service often begins with a phone call. The way businesses handle these calls can make or break customer relationships. It’s critical for businesses to ensure that their phones are answered promptly, professionally, and at all hours of the day. However, deciding between an in-house receptionist or outsourcing to a 24-hour answering service can be a difficult choice, especially for small businesses working within limited budgets.
For many small businesses, outsourcing to an answering service is a more cost-effective solution that offers flexibility, coverage outside of standard office hours, and scalability. This type of business phone answering service provides consistent service and ensures that all calls are answered, even during busy periods. On the other hand, some businesses may prefer to hire in-house receptionists who offer more personalized service and deeper integration into the business’s operations.
This article will provide an in-depth comparison between outsourcing to a live receptionist and hiring an in-house receptionist. By exploring the costs, benefits, and challenges of each, we will help you determine the best phone answering services to fit your small business needs.
Benefits of Live Receptionists for Businesses
Enhanced Online Presence
Live receptionists manage communications across phone, email, social media, and chat, providing seamless engagement on all channels. This strengthens lead generation and customer satisfaction, especially for businesses without an in-house team.
Improved Customer Satisfaction
Personalized service is key for live receptionists. They build rapport, handle complex inquiries, and respond with empathy, increasing customer satisfaction and retention—essential for business growth and loyalty.
Increased Efficiency
By managing tasks like scheduling and call routing, live receptionists free up business owners to focus on core duties. This boosts productivity and minimizes errors. Live appointment scheduling services also ensure no lead is overlooked.
Cost-Effective Solution
Outsourcing to a live receptionist is more affordable than hiring and training in-house staff. Businesses can scale services based on call volume, saving on overhead while still receiving professional support.
Professional Image
Live receptionists ensure businesses maintain a polished, professional appearance, even during busy or after-hours periods. Their personalized service creates a positive, lasting impression that helps businesses stand out from competitors.
In-house Receptionist vs. Outsourced: Cost Comparison
When deciding between an in-house receptionist and an outsourced telephone answering service, cost is often the first consideration. Both options have distinct price ranges and service levels, and it’s important to weigh these factors carefully to ensure that your business is getting the most value for its money.
Here’s a detailed breakdown of the costs and benefits of each approach:
In-House Receptionist Costs
Hiring an in-house receptionist is typically more expensive upfront, especially for small businesses. The cost of salaries, benefits, and other overhead expenses can quickly add up. According to recent industry surveys, a full-time in-house receptionist costs between $2,000 to $4,000 per month.
This includes salary, benefits, insurance, and workspace costs. If you require receptionists to work beyond standard office hours, you may also face overtime pay or the need to hire multiple staff members to cover shifts.
Cost Analysis of In-house Receptionist
Outsourced Answering Service Costs
In contrast, outsourcing to an affordable answering service provides small businesses with more flexibility and lower costs. Answering services can be priced as low as $50 per month for basic packages, and higher-end services can go up to $350 per month depending on call volume, additional services, and the complexity of your business needs. These packages often include 24/7 coverage, ensuring that your business never misses a call, even outside normal operating hours.
Outsourced call answering services offer cost-effective scalability—businesses can adjust service levels based on the number of incoming calls, ensuring that they only pay for what they need.
Cost Analysis of Outsourced Receptionist
Key Factors to Consider
Choosing between an in-house receptionist and an outsourced answering service involves evaluating several critical factors:
Cost and Budget Constraints
For small businesses, cost is often the primary concern. Outsourcing to an affordable answering service is typically much cheaper than hiring in-house staff, as it eliminates expenses for salaries, benefits, and workspace. If your budget is tight, outsourcing allows you to allocate resources more efficiently.
Call Volume
If your business handles a high volume of calls, outsourcing ensures all customers are attended to promptly. In-house receptionists may struggle to keep up with large call volumes, leading to missed calls and customer frustration. However, if call volume is low, an in-house receptionist can manage calls alongside other administrative duties.
Availability and Flexibility
Outsourced services typically provide 24/7 availability, which is crucial for industries like healthcare, e-commerce, and home services. In contrast, in-house receptionists usually work standard office hours. For after-hours coverage, outsourcing to a 24-hour answering service is the best solution.
Expertise and Personalization
In-house receptionists offer more personalized service, as they are familiar with your business’s specific needs. However, many outsourced services now offer dedicated receptionists who exclusively handle your calls, providing a similar personalized experience.
Flexibility in Scaling
Outsourcing allows businesses to scale services easily. You can adjust coverage during peak seasons or reduce it during slower periods. In-house teams, however, require additional hiring, training, and management, making scaling more complex.
Consideration of Automated Answering Services
If neither in-house nor outsourced live receptionists fit your business model, automated answering services are a viable alternative. These systems are highly efficient for routine inquiries and cost significantly less. AI-driven systems can answer common questions, route calls, and schedule appointments, offering consistent support at a lower cost.
Automated Systems: A Lower-Cost Alternative
Automated systems, particularly AI-driven answering services, offer a more cost-effective solution. These systems typically cost between $30 and $200 per month, depending on the complexity of the service and the number of calls handled. While they are more affordable, businesses should consider the trade-offs in terms of customer experience, as automated answering systems often lack the personal engagement that live receptionists provide.
The Bottom Line
While live receptionists have higher upfront costs, they often yield a greater return on investment (ROI) by improving customer satisfaction and reducing lost business. Automated answering systems, on the other hand, provide a more scalable and budget-friendly option for businesses focused on efficiency. Ultimately, business owners should weigh their specific needs and customer service goals when deciding between the two.
Use the diagram below to see if automated system can be a solution to your business:
The Challenges of Hiring Live Receptionists
Hiring live receptionists—whether in-house or outsourced—comes with its own set of challenges. For one, turnover rates for receptionists can be high, and training new hires requires time and resources. In-house receptionists must be trained on the specific needs and operations of your business, which can be a lengthy and costly process. Furthermore, managing the daily responsibilities of a live receptionist, including call handling, appointment scheduling, and other administrative tasks, can be overwhelming for small businesses without dedicated HR departments.
Outsourced phone answering services, while more flexible and affordable, may also face challenges when it comes to continuity. Receptionists working for multiple clients may lack the intimate knowledge of your business that an in-house receptionist would have. However, many vendors offer options for dedicated receptionists, reducing the learning curve and ensuring more consistent service.
Use Cases: How Different Industries Utilize Live Receptionists
Different industries have specific needs when it comes to customer service and call handling, leading them to choose between hiring in-house receptionists or outsourcing live receptionist services. Below, we explore how various industries utilize live receptionists and which approach is more commonly preferred, the approximate pricing for both in-house and outsourced options, and the vendors that provide the outsourcing service for live receptionists.
Live Receptionist Vendor Summary
Healthcare
- Industry Preference: Outsourced Live Receptionists
Healthcare providers need reliable, 24/7 support to manage patient inquiries, appointment scheduling, and emergency calls. Outsourcing is common in this sector, as it allows providers to maintain HIPAA compliance without the costs of staffing multiple full-time receptionists.
- In-house Salary: Full-time medical receptionists earn between $32,000 and $45,000 annually.
- Outsourced Pricing: Outsourced healthcare receptionists typically range from $350 to $1,500 per month.
Vendors:
- WellReceived (HIPAA compliant, starting at $375/month plus $49.99 setup fee)
- PatientCalls (Custom pricing – Contact sales for quotes)
- MAP Communications (HIPAA compliant, pay-as-you-go program starting at $49/month and $1.37 for every additional minutes)
- Signius Communications (HIPAA compliant, starting at $45/month and $1.35 per additional minute)
E-Commerce
- Industry Preference: Outsourced Live Receptionists
In e-commerce, businesses frequently deal with customers across various time zones, making 24/7 support essential for managing orders, shipping inquiries, and returns. Outsourcing is especially valuable during peak seasons like holidays.
- In-house Salary: Receptionists in e-commerce earn between $30,000 and $40,000 annually.
- Outsourced Pricing: Live receptionists cost between $349 and $1,500 per month, depending on services.
Vendors:
- Nexa (Custom pricing – Contact sales for quotes)
- AnswerForce (Starts at $349/month for 200 minutes plus setup fee)
- Stealth Agent (Starts At $10 - $15 Per Hour / Full Time Agent)
- AnswerConnect (Starting at $350/month for 200 minutes plus additional setup fee of $49.99)
Law Firms
- Industry Preference: Hybrid (In-House & Outsourced)
Law firms require confidentiality and legal knowledge, leading them to rely on in-house receptionists. However, many also outsource for overflow calls or after-hours support, particularly for urgent client matters.
- In-house Salary: Legal receptionists earn between $35,000 and $50,000 per year.
- Outsourced Pricing: Outsourcing typically costs between $255 and $1,500 per month.
Vendors:
- AnsweringLegal (Custom pricing – Contact sales for quotes)
- Lawyer Line (Bronze program starting at $2.00/minute)
- AlertCommunications (Custom pricing – Contact sales for quotes)
- AnswerConnect (Starting at $350/month for 200 minutes plus additional setup fee of $49.99)
Government Agencies
- Industry Preference: In-House Receptionists
Government agencies often deal with sensitive information and prefer in-house staff. However, smaller agencies may use outsourced services for general inquiries.
- In-house Salary: Government receptionists earn between $35,000 and $50,000 per year.
- Outsourced Pricing: Outsourced services start from $29 to $350 per month, depending on the level of service.
Vendors:
- AnswerConnect (Starting at $350/month for 200 minutes plus additional setup fee of $49.99)
- Responsive Answering Service (Basic program starting at $29/month plus $75 setup fee and $1.25 per additional minute)
- 24 Answering (Starting at $39/month and $1.49 per additional minute)
- Absent Answer (Custom Pricing – Contact sales for quotes)
Contractors and Home Services
- Industry Preference: Outsourced Live Receptionists
Contractors and home service providers need receptionists to handle client inquiries, schedule appointments, and dispatch services while working on-site. Outsourcing ensures no call is missed.
- In-house Salary: Receptionists in this sector earn between $30,000 and $40,000 annually.
- Outsourced Pricing: Services typically cost between $49 and $500 per month, depending on call volume.
Vendors:
- AnswerPro (Custom pricing – Contact sales for quotes)
- ReceptionHQ (Pay-as-you-go starting at $49/month plus $1.99 per additional minute)
- GoAnswer (Starts at $175/month)
- MAP Communications (Pay-as-you-go program starting at $49/month and $1.37 per additional minute)
Retail
- Industry Preference: Outsourced Live Receptionists
Retail businesses, especially those with fluctuating hours, rely on outsourced receptionists to manage customer inquiries, returns, and order tracking. This ensures peak-time coverage and better customer satisfaction.
- In-house Salary: Retail receptionists earn between $28,000 and $35,000 per year.
- Outsourced Pricing: Reception services cost between $329 and $1,000 per month.
Vendors:
- AnswerConnect (Starting at $350/month for 200 minutes plus additional setup fee of $49.99)
- Abby Connect (Starting at $329/month for 100 minutes)
- AnswerForce (Starts at $349/month for 200 minutes plus setup fee)
- Ace Answering (Starts at $59 for virtual receptionist)
Religious Affiliations
- Industry Preference: Outsourced Live Receptionists
Religious organizations often use outsourced receptionists for managing inquiries, event bookings, and donations, freeing up internal resources for mission-focused work.
- In-house Salary: Receptionists earn between $25,000 and $35,000 per year.
- Outsourced Pricing: Pricing starts at $205 per month and can go up depending on services.
Vendors:
- Continental Message Solution (CMS) (Starting at $350/month for 200 minutes plus additional setup fee of $49.99)
- PATLive (Starting at $205/month and $1.82 per additional minute)
- AnswerConnect (Starting at $350/month for 200 minutes plus additional setup fee of $49.99)
- AnswerNet (Custom pricing – Contact sales for quotes)
Religious Affiliations
- Industry Preference: Outsourced Live Receptionists
Religious organizations often use outsourced receptionists for managing inquiries, event bookings, and donations, freeing up internal resources for mission-focused work.
- In-house Salary: Receptionists earn between $25,000 and $35,000 per year.
- Outsourced Pricing: Pricing starts at $205 per month and can go up depending on services.
Vendors:
- Continental Message Solution (CMS) (Starting at $350/month for 200 minutes plus additional setup fee of $49.99)
- PATLive (Starting at $205/month and $1.82 per additional minute)
- AnswerConnect (Starting at $350/month for 200 minutes plus additional setup fee of $49.99)
- AnswerNet (Custom pricing – Contact sales for quotes)
Property Management
- Industry Preference: Outsourced Live Receptionists
Property management companies rely on outsourced services for handling tenant inquiries, scheduling maintenance, and leasing requests, ensuring 24/7 availability.
- In-house Salary: Property management receptionists earn between $32,000 and $45,000 annually.
- Outsourced Pricing: Costs range from $179.95 to $800 per month, depending on property size.
Vendors:
- Property Answer (Starting at $179.95/month for 50 minutes)
- Answering Service Care (Pay-as-you-go starting at $35 and $1.55 for every additional minute)
- AnswerLive (Starting at $65 for 50 minutes)
- AnswerConnect (Starts at $350/ month for 200 minutes)
Higher Education Institutions
- Industry Preference: Outsourced Live Receptionists
Higher education institutions use outsourced receptionists to handle peak call volumes during admissions and financial aid seasons, improving response times.
- In-house Salary: Receptionists in higher education earn between $35,000 and $50,000 annually.
- Outsourced Pricing: Services cost between $45 and $1,200 per month, depending on call volume.
Vendors:
- MAP Communications (Pay-as-you-go program starting at $49/month and $1.37 per additional minute)
- Signius Communications (Starting at $45/month and $1.35 per additional minute)
- AnswerMTI (Starting at $47/month and $1.37 per additional minute)
- Kolaxoccs (Custom Pricing – Contact for quotes)
Conclusion
The decision between hiring an in-house receptionist and outsourcing to an answering service ultimately comes down to your business’s specific needs, budget, and operational requirements. Outsourcing provides flexibility, scalability, and 24/7 coverage at a fraction of the cost of hiring a full-time employee, making it an ideal option for many small businesses.
On the other hand, businesses that prioritize personalized service and direct oversight may prefer the more hands-on approach of an in-house receptionist. By weighing the costs, benefits, and challenges of each option, small businesses can make an informed decision that balances efficiency, customer satisfaction, and affordability.
In the end, the right business answering service solution will ensure that every call is answered professionally and promptly, leaving your customers with a positive impression of your business.
About this Series
This is a series of 5 articles exploring customer communication strategies for small businesses, focusing on answering services:
-
Why Small Businesses Need an Answering Service?: Discover the importance and benefits of answering services.
-
(This Article) Outsourcing vs. In-house Live Receptionists: What is live receptionists? Should you outsource or hire in-house?
-
Automated Phone Answering Systems (Interactive Voice Response IVR vs. Voice AI Agents): What is automated answering service? Should you use robotic IVR or Voice AI agents?
-
Decision: Should My Small Businesses Use Live Receptionists or Automated Answering Services?: You’ve learned all about answering services from our series. Now it’s time to decide which type of service is best for your business.
-
OpenAI vs. Human vs. Voice AI: A Cost Comparison: The latest voice AI technology from OpenAI is a great voice AI agent. What is the real cost?
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