How Much Does It Cost to Hire a Qualified IT Manager?

 Hiring a full-time IT manager might seem like the logical next step for growing businesses. But for many, the sticker shock hits hard. Between the base salary, benefits, overhead, and other hidden factors, the cost of hiring in-house adds up quickly.

And in some cases, it may not be the smartest investment. 

So, what should you really expect to pay, and what are the alternatives? 

Intelligent Technical Solution (ITS) has been providing reliable IT services to small and midsize businesses (SMBs) for over a decade. In this article, we’ll break down the true cost of hiring a qualified IT manager as well as offer real-world insights from Rob Schenk, Chief Security Officer of ITS.

After reading, you’ll be able to decide whether it makes more sense to build your internal team or outsource IT entirely. 

What Does an IT Manager Actually Do? 

Before you calculate costs, it’s important to understand what an IT manager is responsible for. This isn’t an entry-level support role. An IT manager is typically tasked with: 

• Overseeing internal IT staff or technicians 

• Managing IT vendors and third-party services 

• Handling IT budgeting and procurement 

• Leading strategic technology initiatives 

• Ensuring cybersecurity and compliance readiness 

• Overseeing network reliability and performance 

In smaller organizations, the IT manager might also be the one fixing hardware issues and responding to helpdesk tickets. But ideally, their role is strategic: making sure the company’s IT ecosystem supports business growth, rather than holding it back. 

Breaking Down the Cost: What You’ll Pay for a Qualified IT Manager

1. Base Salary

According to Glassdoor, the average base salary for a mid-level IT manager in the U.S. falls around $100,000 to $180,000 annually. However, this number can vary significantly depending on the location, industry, and the level of experience required. 

According to Schenk, "In an average market, the total cost is a minimum of $100,000, up to $125,000 with benefits." 

If your business is located in a major metro area like San Francisco, Seattle, or New York, you can expect that number to climb 30 to 40% higher. That puts your IT manager’s base salary closer to $150,000, or more annually. 

Certifications and credentials also influence cost. A manager with a CISSP (Certified Information Systems Security Professional), PMP (Project Management Professional), or extensive compliance experience can demand a premium salary.

2. Benefits and Overhead

Hiring an employee means paying more than just their salary. Benefits and operational costs often add 25 to 50% to the base compensation. These include: 

• Health insurance and dental/vision plans 

• Paid time off (PTO) and holidays 

• Payroll taxes and worker’s compensation 

• 401(k) or retirement contributions 
• Office equipment, workstation, and licensing costs 

Schenk also points out the real-world impact of vacation time, "If you have one IT person and they go on vacation, you've lost 100% of your IT workforce." 

Unlike a team or an outsourced provider, a single IT manager can’t offer redundancy.

3. Hidden Costs

There are several additional costs that business leaders don’t always anticipate when hiring in-house: 

Recruitment and Onboarding

The hiring process is time-consuming and resource intensive. You may review dozens of candidates to find one that fits. 

Turnover risk

If the employee leaves, you lose institutional knowledge and face another costly recruiting cycle.

Skill limitations

No single person can master every domain, like cybersecurity, helpdesk, cloud, compliance, disaster recovery, etc.

Task prioritization issues

Schenk explains, "People tend to focus on what they like. One-person IT setups often end up neglecting something important." 

Even in a company with just 50 people, the IT landscape is complex and constantly evolving. 

Sample Scenarios: What Hiring Actually Costs 

Here’s a simplified breakdown of typical cost scenarios: 

These figures account for salary, benefits, equipment, and basic training. Specialized skills like compliance, cybersecurity, or cloud infrastructure management drive the cost even higher. 

What About Outsourcing to a Managed Service Provider (MSP)? 

If hiring internally seems too expensive or risky, outsourcing IT to an MSP is a viable alternative, especially for SMBs.

"If you run the numbers," Schenk says, "an MSP can bring a full array of resources, including automation, remote monitoring, helpdesk, project management, and strategic planning, for significantly less than hiring all the employees it would require to handle all of those tasks." He adds that in some cases, MSPs can do all of that work and more for roughly half the cost. 

MSPs offer: 

• A full team of specialists, not just one person 

• 24/7 support coverage 

• Access to senior-level expertise on demand 

• Redundancy, process consistency, and better scalability 

Many businesses find that an MSP can handle all the tasks of an IT manager (and more) for half the cost. 

When Does Hiring In-House Make Sense? 

While outsourcing is often the more cost-effective option, there are times when hiring an IT manager is justified: 

• Highly regulated environments: If your business handles sensitive financial, health, or defense data, you may need someone onsite who understands compliance protocols. 

• Large internal teams: If you already have 5 or more IT employees, a manager can provide leadership and alignment. 

• Hybrid models: In co-managed environments, internal managers handle daily operations while MSPs provide higher-level strategy and support. 

What to Look for in a Qualified IT Manager 

If you're set on hiring in-house, it's critical to find the right person, someone with both technical expertise and business acumen. 

Prioritized Qualifications: 

• Industry certifications: CompTIA Network+, Security+, CISSP, or PMP 

• Relevant experience: Progressive IT roles with demonstrated success 

• Vertical expertise: Experience in your industry is a major bonus 

• Soft skills: Communication, empathy, and strategic thinking 

According to Schenk, technical certifications matter, but interpersonal skills are equally important: "It’s important to find someone who has technical acumen and can also talk to people in a way that makes them feel listened to," he says. “And sometimes that's a challenge to find.” 

In your evaluation process, include scenario-based testing to see how candidates solve real-world problems. 

Ready to Find Someone to Lead Your IT Team? 

The decision to hire a full-time IT manager isn’t just about filling a role, it’s about ensuring your IT supports your business, not holds it back. However, the price is steep. If you’re hiring in-house, you should expect to pay out between $100,000 to $150,000 annually for a qualified manager.

Not to mention, there’s a risk that one person can’t cover all your needs, it’s worth exploring different solutions. 

That’s where outsourcing comes in. Whether it’s hiring an MSP to provide full services or getting co-managed IT to support your in-house team, outsourcing is a cost-effective way to cover all your bases.

At ITS, we can help businesses gain access to the tools, expertise, and strategic guidance that will help them maximize their technology. Schedule a free consultation now if you want to reduce your IT costs and increase your business resilience.