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Should You Hire a Receptionist or Use AI? A Cost Comparison for Contractors

By Brandon Calloway2026-01-176 min read

The Receptionist Dilemma

Every growing contractor faces the same question: your phone is ringing off the hook, you're missing calls, and something has to change. The traditional answer is "hire a receptionist." But is that really the best move?

Let's break down the actual numbers.

The True Cost of a Full-Time Receptionist

When you hire a receptionist, the salary is just the beginning:

| Expense | Annual Cost |

|---------|-------------|

| Base salary (median) | $35,000 |

| Health insurance | $6,000 |

| Payroll taxes (7.65%) | $2,678 |

| Paid time off (10 days) | $1,346 |

| Training & onboarding | $1,000 |

| Desk, computer, phone | $2,000 (first year) |

| **Total Year 1** | **$48,024** |

And that's for a *single* person who works 8 hours a day, 5 days a week. What happens when they're:

  • Sick?
  • On vacation?
  • At lunch?
  • Handling another call?
  • Your phone goes to voicemail. And 80% of callers don't leave voicemails.

    The True Cost of AI Phone Answering

    AI phone answering costs fall into two categories:

    Setup costs (one-time):

  • AI voice training: $1,000-2,000
  • CRM integration: $500-1,000
  • Testing and refinement: Included
  • **Total setup: $1,500-3,000**
  • Monthly costs:

  • Per-minute usage: $0.05-0.12/minute
  • Average contractor gets ~500 minutes/month of calls
  • **Monthly cost: $25-60**
  • Annual cost: $300-720 + setup

    The Comparison

    | Factor | Receptionist | AI Phone |

    |--------|-------------|----------|

    | Annual cost | $48,000+ | $1,800-3,720 |

    | Availability | 40 hrs/week | 24/7/365 |

    | Sick days | Yes | Never |

    | Vacation | 2 weeks/year | Never |

    | Handles multiple calls | No | Unlimited |

    | After-hours coverage | No | Yes |

    | Weekend coverage | No | Yes |

    | Scaling cost | $48k per hire | Pennies per call |

    But What About the Human Touch?

    This is the most common objection. "I want a real person answering my phones."

    Here's the reality: modern AI voice technology is remarkably good. Most callers can't tell they're talking to an AI. And even if they could—they care more about getting their problem solved than who (or what) answers.

    What customers actually want:

  • **Fast answer** - AI picks up in under 2 seconds
  • **Their question addressed** - AI is trained on your business
  • **Action taken** - AI books appointments and sends confirmations
  • **Urgent calls escalated** - AI texts you immediately for emergencies
  • When a Receptionist Still Makes Sense

    AI isn't always the answer. Consider a receptionist if:

  • You have a physical office with walk-in customers
  • Your business requires in-person administrative work
  • You need someone to manage inventory or supplies
  • Call volume exceeds 2,000+ minutes per month consistently
  • The Hybrid Approach

    Many contractors use both:

  • **AI handles:** After-hours, weekends, overflow calls, initial screening
  • **Receptionist handles:** In-person visitors, complex scheduling, admin tasks
  • This lets you get a part-time receptionist ($18,000/year) plus AI ($1,800/year) for less than a full-time hire—with better coverage.

    Making the Switch

    If you're currently missing calls and debating what to do, here's my recommendation:

    1. **Track your current missed call rate** - Most contractors don't know how bad it is

    2. **Calculate the cost** - Missed calls × average job value = lost revenue

    3. **Start with AI** - It's low-risk and you can always add staff later

    4. **Measure results** - Compare before/after booking rates

    Want to see what AI phone answering could do for your specific business? [Get a free AI audit](/free-audit) and we'll show you exactly how many calls you're missing and what it's costing you.

    About the Author

    Brandon Calloway is the founder of Work Hard AI. He left Fortune 500 companies (JPMorgan Chase, DuPont) to run blue collar businesses and now helps other contractors implement the same automation systems he built for himself.

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