Hire someone or automate? The math to do first
MHBy Manuel Hdez
Hire or automate? It depends on the work you have too much of. If it's repetitive tasks that always follow the same steps, automating is far cheaper than a person. If it's varied work involving customers and judgement, you need someone. And often the right answer is both, in that order.
What does hiring really cost?
A lot more than the salary. In Spain in 2026, on a permanent contract, the social security the employer pays comes to about 32% of the gross salary (common contingencies, unemployment, training, FOGASA, the MEI and workplace accident cover).
In numbers: a part-time employee on €12,000 gross a year costs the business around €15,800. And that's before counting the time you spend training them, holidays or sick leave.
What does automating the same work cost?
A simple automation (payment reminders, standard quotes, the usual replies) typically costs between €1,500 and €4,000 to set up on the market, plus maintenance of €50 to €200 a month. The first year comes to roughly €2,100 to €6,400, and from the second year you only pay maintenance.
But comparing €15,800 with €6,400 just like that is cheating yourself. Automation does part of the job, not a person's job. It won't pick up the phone for a new request or calm down an angry customer.
The fair comparison is by hours
For one week, write down the hours that go into repetitive tasks. Say it comes to 8 a week. Hiring someone part-time to cover them is paying for 20 hours to fill 8. If those 8 hours are mechanical, automating them is by far the cheaper option.
The deciding question is simple: can you write the task down as a recipe? 'When an invoice is 7 days overdue, I send this reminder' can be automated. 'I talk to the customer who hasn't paid and we see what to do' needs a person. If you say 'it depends' in every sentence while describing the task, it's not one for a machine.
The answer almost nobody considers: both, in order
Automating the mechanical work first delays the hire or means that, when someone does join, they spend their time on what really needs a person: serving, selling, solving. Hiring someone to copy data from one program to another is paying a salary to act as glue.
And sometimes hiring is the right call. If what's drowning you is serving customers or selling, no automation will replace that, and we'll tell you so just as plainly. You can run your own numbers in our savings calculator.
Frequently asked questions
How much does an employee cost a business on top of the salary?
In Spain in 2026, employer social security comes to about 32% of the gross salary on a permanent contract. Someone on €12,000 gross a year costs the business around €15,800, not counting training, holidays or sick leave.
Does automation replace an employee?
It replaces tasks, not people. An automation takes over repetitive work that always follows the same steps, but it doesn't handle new requests, negotiate or solve a problem with a customer. You still need someone for that.
When is hiring better than automating?
When the work you have too much of is varied: dealing with customers, selling, or decisions that depend on each case. If you can't write the task down as a recipe with fixed steps, it needs a person.
Can I automate and hire at the same time?
Yes, and it's usually the most profitable option: automate the mechanical work first, then the person who joins spends their time on what really needs someone. That way you're not paying a salary to copy data from one place to another.
Sources
To fine-tune the automation side of your numbers, see what the price of automating a small business depends on.
Want to see this applied to your business? Let's talk.
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