What is outsourcing?
By definition, it’s the idea of hiring people or parties from outside of your business to provide goods or services. This differs from hiring employees as the people/companies you outsource don’t become part of your company. They’re not on your payroll, and they aren’t classified as your employees.
Many staffing agencies are encouraged to look into outsourcing, but why? What benefits does it pose a small business owner in this modern climate? Below, we look at the key advantages you’ll find when outsourcing certain services:
Constant access to support
A genuine benefit of outsourcing is that it’s more available than hiring people to be part of your in-house team. What we mean is that you’re often given full-time support, even outside of business hours. Staffing agencies can outsource IT services and have access to the support team 24/7/365. Compare this to an employee – they won’t work out of hours. So, you’ll likely only get support during their contracted hours.
The same goes for other outsourced services too; you can pay for accountancy services and potentially get advice whenever you want. There are fewer restrictions on contact hours, meaning you don’t have to wait around when you need help or support.
Reduce overhead costs
Outsourcing can be more affordable than hiring individual employees. When you outsource, you’re charged a set rate for the service. This is a simple figure that you will either pay upfront, pay when a job is done, or pay at regular intervals. It depends on who you’re outsourcing and how long you need them for.
By comparison, employees are extremely expensive. If you look at www.recruiterbox.com, you’ll see the average cost of hiring an employee. It costs a few thousand dollars just to bring someone new aboard your ship. But, that doesn’t take into account their actual wage, plus the cost of employee benefits, insurance, and more. Overall, outsourcing can be a more budget-friendly alternative to full-time hires.
Sales force automation
Sales force automation solutions will streamline your entire sales process and automate the business tasks of sales, such as order processing, contact management, and information sharing. This will allow you to better manage your customers and sales pipeline.
Instant team chemistry
If you wanted to hire employees to form a team, then you’re basically bringing a few strangers together. They might have their talents, but it takes time to train everyone to work a certain way, and for chemistry to form between them. Often, the chemistry never forms, leading to issues with productivity.
This is a fundamental advantage of outsourcing; you can pay for a team that’s already formed and experienced. There’s instant team chemistry as they’ve worked together before and understand how to be productive. You don’t have to go through a training phase as it’s already been done. So, no time is wasted, and you pay for a service that’s efficient and productive from the get-go.
Outsourcing comes with more benefits, but these are the crucial ones for staffing agency owners. As a summary, outsourcing helps you save money & time while hiring an experienced and talented team that offers continuous support. When your business expands, you may realize that having some in-house staff becomes more beneficial. However, outsourcing is seen as a clever way to complement a small business in the early stages.
