While hiring employees can be beneficial for your business, it also means that you add to your overhead. So if your business ever enters a period of decline, this overhead is still on your books until it is cut. Or... you can hire everyone and share an office with this guy...
Here are some ways that outsourcing employees can help your business:
Outsourcing employees can be an enormous asset for a small company. According to The Employee App, “companies are taking advantage of this breed of worker to save money and access certain skill levels without having to increase headcount. Interestingly, according to the article, five of the top 20 global employers in 2017 were outsourcing companies, and that number continues to trend upward.” For every employee who is on your payroll, there is an extra cost for administration. Outsourcing shifts some of the administration overhead off of your books. In other words, there is less personnel necessary because each employee requires additional resources to be spent.
In nearly every instance, it is the people who have done the job before and have experience who are the ones who perform best. Sometimes, it is easier to bring someone on in a temporary capacity who has a dedicated expertise as opposed to having to learn the task yourself. This reduces the learning curve and will likely mean that the job is being performed better. At the same time, you can learn by watching what the outsourced employee does, so you are able to perform the task in the future. According to Twago, “you can always depend on freelancers for future improvements and upgrades in design. It is rare for entrepreneurial freelance designers to fire themselves. The majority of successful and talented freelancers enjoy their professional lives and work, always improving their skills. You will find that those you have a good work relationship with are always hungry for additional future.”
It is difficult to reduce staff if your business experiences a slowdown. There are various costs when it comes to laying off employees, both psychological and financial. When you outsource a function, it is easier to cut back if you cannot afford it due to a lull in business. According to Syndeo, “it is much easier, less time consuming and more efficient (and, coincidentally, less costly) to outsource a job to a qualified professional than having to search for, hire and train a new-hire to do the job. Outsourcing also affords companies the opportunity to benefit from the perspective of an outsider who also happens to be an expert.” Your reputation will not suffer the same hit as it would if you were to terminate employees. You can also experiment with different mixes of staff to see what works for you since the only obligation that you have is with the company who provides the outsourced employee. It is much easier to get lean in a hurry if you are working with employees who are not on your payroll.
Outsourcing has many different ways that it can help your business. This is especially true when your business is in the growth phase and cost savings and flexibility are at a premium.