Outsourcing has become more and more popular over the past few years, yet a lot of small business owners are still reluctant to consider this approach. If you find yourself falling into the latter category, it is completely understandable. You can feel like you are handing over a portion of your business and losing control. In fact, outsourcing can often mean quite the opposite. It is important to be open to the idea, as it can bring about many benefits, including efficiencies and reduced expenditure. With that in mind, let’s take a look at some of the evident signs that now is the time to stop hiring and start outsourcing.
1) The cost of hiring a new employee is higher than the cost of outsourcing – Let’s begin with the most obvious point of them all; it is more expensive to hire a new employee than it is to outsource. One of the main reasons why small business owners don’t outsource is because they are concerned about the cost. However, if you assess the costs in full detail over the course of a year, you will often find that taking on a new employee is much, much more expensive.
2) The job results in the waste of valuable time and energy – There are many tasks that end up taking a considerable amount of time and energy, yet they are vital to the daily running of your business. IT is a prime example. Managed IT services enable you to focus on the profit-driving core competencies of your business and keeping up with the competition while experts handle the time-consuming task of IT support. You also get the piece of mind that everything will run smoothly at all times.
3) The task is one that recurs in cycles or is only required on a temporary basis – If it does not make sense to hire someone full-time to carry out the job, you should look into outsourcing instead. After all, you would spend much more on the employee’s downtime than you would spend on their actual work. Consulting companies and contractors only charge for the amount of work they do, ensuring you get the most bang for your buck. This is also applicable to one-time projects, for example, yearly taxes or designing a website.
4) The skill that is required is specialized – Last but not least, if the skill that is required is specialized, there is no point in making your employees undertake training when you can tap into a pool of expert professionals instead. Remember, outsourcing is not there to take over or replace the departments you already have; it is there to supplement them.
If any of the four points above sound familiar, now is the time to consider outsourcing. It may seem daunting, but if you take the time to choose a contractor or consulting firm with care, you will soon see and experience the benefits that come with outsourcing a portion of your business. It is also extremely flexible, meaning you can easily move back to in-house at any moment you wish.
I hope you enjoyed this article about signs that you need to stop hiring full time employees and start outsourcing certain business functions.
Interested in more articles about cutting employee costs?
Read My Posts:
- 4 Strategies To Reduce Employee Training Costs
- The Top 5 Jobs You Need To Outsource
Published by Michael J Schiemer
Owner of Bootstrap Business
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