Guide: Benefits of a Small Agency vs. an In-House Designer

You've got a project on the horizon—a new website design, a company rebrand, or maybe it's that overdue email campaign. The question is: who do you turn to for help? Should you tap into your in-house design team, or is it time to bring in the big (but not too big) guns—like a small, agile design agency?

We get it—this decision can feel a bit overwhelming. But don't worry; we've seen this crossroads before and are here to help. Whether you need a fresh perspective or extra hands to get the job done, this guide will help you determine whether an in-house designer or a small agency (like us at DC&Co) is the right fit for your next project. Let's dive into the pros and cons, break down the real costs, and get real about what's best for your brand.

Overview

• Before you start your project
• Factors to consider
  • Cost
  • Breadth
  • Availability
  • Speed
  • Context
  • Risk
  • Innovation
• The big winner

Before you start your project

Before you dive into choosing between an in-house designer and a small agency, it's essential to define the scope of your project. The clearer your needs are from the start, the smoother the process will be—whether you're working with an internal team or bringing in outside expertise.

Define your needs

First things first: What type of project are you launching?

Is it a brochure, web page, or email template? Or perhaps something more complex, like a full-scale website redesign or brand refresh? Knowing the type of project sets the foundation for everything that follows.

Equally important is the complexity of the project. Ask yourself:

• How intricate is this project? Does it require multiple design elements, like illustrations, animations, or interactive components?
• Do you already have brand identity assets? Or will the project include defining or refining your logo, colors, and typography?

Understanding this upfront will help you determine the level of expertise you need. For example, a simple one-page website design may only require basic design skills, while a complete rebrand or website build demands a team with broader expertise.

This step also clarifies the breadth of skills necessary to get the job done right. If you're dealing with something complex, like a website overhaul, you might need more than just design expertise. You'll need developers, UX specialists, and copywriters to bring the project to life.

Define your resources

Once you've established the type of project and its complexity, it's time to get real about the resources you have at your disposal.

Start by defining your budget. How much are you willing to invest? Keep in mind that while hiring an in-house designer might seem like the cheaper option upfront, there are long-term costs, including benefits, taxes, and training. On the flip side, agencies charge per project, but you're getting the full range of skills they bring to the table.

Next, define the internal stakeholders. Who in your company will "own" this project? Whether it's a marketing leader, a product manager, or a content director, having a clear point of contact is crucial to keeping things running smoothly.

Knowing these internal roles and responsibilities will help:

• Determine the level of professional you can bring in or hire.
• Smooth project management by ensuring clear communication between all parties involved, whether they're in-house or an external partner.

With these elements clearly defined, you're setting the stage for success—regardless of whether you choose to partner with an agency or rely on an in-house designer. The key is understanding your needs and resources upfront so you can make an informed decision that drives your project to the finish line.

Factors to consider

When deciding between a small agency and an in-house designer, there are several factors you'll want to weigh carefully. Let's break down the key areas where these two options differ, helping you understand the real costs and benefits.

Cost

When you first look at hiring an agency, it might seem like the more expensive option. But let's get real—there's more to the story than upfront costs.

Upfront Costs:

Agencies charge per project, so you're only paying for the time it takes to get that project done. No hidden fees or unexpected surprises. On the other hand, an in-house designer is a full-time employee, meaning you're not just paying their salary—you're also covering benefits, insurance, taxes, and paid time off.

In perspective, the median pay for a graphic designer in the U.S. is $75,000 (according to Glassdoor). And when you factor in benefits—which make up nearly 30% of that paycheck—you're looking at significantly more than just the salary. And let's not forget, you're also covering time spent on non-design-related tasks, like meetings or training sessions.

Flexibility:

Agencies are adaptable and flexible based on your needs. If you need a quick pivot on a project or want to ramp up during busy periods, no problem. With an in-house designer, you're paying for their time—whether or not you need them at full capacity.

Hiring, Training, and Severance:

Agencies have a team of experts in-house and ready to go, which means you don't have to worry about paying for hiring or training time. Plus, if the relationship ends after the project, no severance or HR paperwork is involved. Hiring a new in-house designer can cost between $4,000 and $20,000 in hiring expenses alone. On top of that, training costs (which were estimated at $1,252 in 2016) have likely increased, and replacing an employee could cost up to six to nine months of their salary.

Winner: Agencies.

While agencies might seem more expensive upfront, when you factor in the hidden costs of an in-house designer (salary, benefits, and overhead), you're actually looking at more significant long-term savings with an agency. Agencies are more flexible, and you avoid paying for things like hiring, training, or severance.

Breadth

Another critical difference between agencies and in-house designers is the variety of expertise available.

Agencies:

Small agencies, like DC&Co, may be small but mighty. They can offer full-service solutions with a team of experts who specialize in everything from branding to website development to custom illustrations. Need a Webflow website built from scratch? Done. Need a complete rebrand? We've got you covered.

Agencies work with multiple clients across various industries, meaning they have experience in a wide range of tools and technologies. Whether it's Figma, Photoshop, or InDesign, they've got you covered—and they can even recommend the best tools for your specific project based on a broader knowledge base.

In-house:

An in-house designer is often limited to one or two areas of expertise, usually based on the specific needs of the company they work for. They might be experts in your company's preferred design stack, but they may not have experience with other tools or approaches that could potentially benefit your project.

Winner: Agencies

Agencies offer a breadth of expertise across different disciplines and tools. If your project involves multiple elements—like branding, development, and design—you're better off going with a small agency that can bring all these skills to the table.

Availability

Availability is often a deciding factor, especially when timelines are tight or when you need ongoing support.

Agencies:

Agencies operate on contract terms, meaning their availability is set around deliverables, meetings, and communication. Most of the time, availability will be remote, with scheduled check-ins for feedback, brainstorming, or reviews. While agencies are typically responsive, they aren't sitting in your office all day, so spontaneous requests may take longer to accommodate.

In-house:

An in-house designer dedicates their entire workday to your organization. They're just a few steps away from your office, making it easy to walk over and collaborate in real-time. However, if multiple stakeholders in the company leverage the same designer, their availability for your specific project might not be as high as you think.

Winner: In-house

If you need someone on-site for daily collaboration, nothing beats the availability of an in-house designer. You'll have faster access and the flexibility to ask questions or give feedback on the fly.

Speed

When it comes to how quickly a project gets completed, both agencies and in-house designers have their pros and cons.

Agencies:

Agencies may sometimes have red tape to navigate—like contracts, approvals, or revisions—especially if multiple stakeholders are involved. However, agencies often have the advantage of larger teams, meaning they can pull in extra hands when needed to meet deadlines. Because the timeline is contractually specified, agencies are held accountable for the project's schedule and will prioritize it based on agreed-upon deadlines.

In-house Designers:

The speed at which an in-house designer can work depends largely on their availability and workload. If they're juggling multiple projects or are the only designer on the team, this can slow down progress. Since in-house designers are part of your team and there's no formal contract outlining specific project deadlines, timelines can often shift, or projects might get deprioritized in favor of other internal needs.

Winner: Tie

There's no clear winner here because speed depends on several variables for both agencies and in-house designers. Both can accommodate necessary deadlines for high-priority projects, but your experience will depend on the specific agency or designer in question.

Context

Understanding your brand's unique context and goals is critical for successful design work. So, how do agencies and in-house designers compare?

Agencies:

At first glance, it might seem like agencies, being external, would have a more challenging time grasping your brand's context. However, agencies have dedicated procedures to ensure their designers thoroughly understand your brand, mission, and vision. They work closely with you during the onboarding process and often bring a fresh perspective from working with a variety of industries. Their focus is on ensuring your brand shines, and their practice in doing this across multiple clients makes them adept at quickly immersing themselves in your world.

In-house Designers:

In-house designers are immersed in your company day in and day out, giving them a natural advantage when understanding your brand's nuances. However, in some cases, in-house designers can become siloed or disconnected from the overall business strategy, especially if they're focused solely on production tasks without the opportunity to engage with the broader company vision.

Winner: Tie

It's easy to assume that in-house designers will always have a better grasp of your business context, but that's only sometimes the case. Agencies have proven strategies for getting to know your brand inside and out, while in-house designers may either thrive in or feel disconnected from their organization's larger mission.

Risk

Risk is a significant factor when deciding whether to hire an agency or an in-house designer. Let's examine the risks involved.

Agencies:

One of the most significant advantages of working with an agency is that your project doesn't depend on just one designer. Even if a designer is unavailable or leaves the agency, the project continues as planned. Agencies are bound by clear contract terms that outline deliverables and deadlines, ensuring accountability. You can also end the relationship cleanly once the contract is fulfilled—without worrying about severance packages or HR hurdles.

In-house Designers:

With in-house designers, you face greater risks. If your designer decides to leave the company, gets sick, or takes vacation time, your project could come to a standstill. There's also the potential severance cost if things don't work out. Unlike with agencies, where the focus is on project completion, the contract terms for in-house designers relate to employment, meaning there's less built-in incentive to meet project deadlines if they aren't explicitly defined.

Winner: Agencies

Agencies pose far less risk for your company. They can seamlessly continue work even if one designer steps away, and you won't be on the hook for expensive severance or delays due to vacation or sick leave. In-house designers, while dedicated to your company, come with higher risk if unexpected circumstances arise.

Innovation

In a fast-paced world where staying ahead of the curve is essential, innovation is key. So, how do agencies stack up against in-house designers in this regard?

Agencies:

Agencies often work across multiple industries, providing them with a broader context and a wealth of knowledge from which to draw. They bring fresh ideas from outside your company, and their teams are known for collaborating and competing internally to develop the best creative solutions. Because agencies are always looking to impress, they tend to push for cutting-edge, innovative work.

In-house Designers:

In-house designers operate within the context of a single company and are often tasked with repetitive, production-based work. This can limit their exposure to fresh, innovative ideas. Since they're not competing for business in the way agencies are, there's less incentive to continuously push the boundaries of creativity.

• Agencies
  • Often work across industries and have more information to draw from to create innovative ideas
  • Often leverage collaboration within the agency, creating a broader collection of ideas from experts
  • Design teams may compete internally to come up with good ideas
• In-house designers
  • Exist in one context — working for the company — so they have less to draw from
  • No incentive to compete or improve

Winner: Agencies

Agencies are naturally more innovative due to their exposure to different industries, clients, and creative challenges. They thrive on collaboration and competition, which drives them to produce new and exciting ideas that keep your brand ahead of the curve. In-house designers, while talented, may not have the same level of exposure or incentive to innovate over time.

The big winner

When it comes down to it, the clear winner is Agencies—especially small but mighty teams like DC&Co.

Agencies offer the kind of flexibility, breadth of expertise, and innovative thinking that in-house designers simply can't match. With agencies, you're paying for results—no hidden costs, no lengthy hiring or training periods, and no downtime. You gain access to an entire team of specialists, each bringing their unique skills to the table, ready to execute your project with precision, speed, and creativity. And let's not forget, agencies know how to stay on the cutting edge of design trends and technology, ensuring that your brand stands out in today's fast-paced market.

In contrast, in-house designers, while dedicated, often have higher long-term costs, fewer skills outside their core expertise, and more risk regarding timeline interruptions or turnover.

If you're looking for a trusted partner to elevate your brand, tackle projects with efficiency, and provide you with access to top-tier talent across design, branding, development, and beyond—choosing a small, full-service agency like DC&Co is the way to go.

Ready to see the difference a small agency can make? Let's get started. Contact us today to discuss how we can be the extended arm of your team and take your project to the next level!

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