November 16, 2016 Business Coaching News 0

Running a business is becoming more complex. New technologies and online marketing means we are breaking away from the conventional methods of performing business operations across the board. And all these changes require specific skillsets.

The rising cost of running a business may also make it difficult for businesses of all sizes to manage cash flow and hit profit targets. Solutions usually include streamlining operations and making cuts to the wage bill.

Business owners, or HR departments, are therefore faced with the dilemma of whether to recruit in-house staff or outsource specialist tasks to qualified professionals that offer services from a remote location. Outsourcing may sometimes require the contractor to work on-site on a short-term contract.

Pros and cons of outsourcing?

There are clear benefits to outsourcing – although there is always an element of risk as well. The objective to outsourcing is to find someone with specialist expertise that can satisfy your needs for the fee you are willing to pay.

Contractors are not difficult to find. Recruitment Process Outsourcing and freelancer sites are big business in today’s market. They are creating more opportunities for workers and providing businesses with cost-effective options.

However, you are not always guaranteed the results you want. For example, you may hire a graphic designer to provide the artwork for your next marketing campaign. The cost is lower than you pay an in-house designer, but could you guarantee the quality – even if they have a great profile.

Of course, once you find a freelancer or a company you can rely on, building a relationship is an ideal solution for both parties. But what about situations where the job you need doing is more complex?

We find that dependent upon the business outsourcing can be a great way of providing both short and long term solutions and there is generally a reliable provider near your business. Getting a provider who is a good fit, an extension to your own business is all important.

Pros and cons of hiring

Your brand is something you need your employees/contractors to understand. This can take time. Developing an understanding of your brand by developing a brand culture is only something you can do to great effect in-house.

There are also advantages to building an in-house team from an operational standpoint. The seamless continuity of teamwork is something people will only achieve if they are working together.

Complex operational systems or projects that involve more than one specialist – creating a website for example – requires everybody involved to be on the same page. Even with a project manager pulling everything together, creative projects can get messy.

An in-house team that can gather round the meeting table to brainstorm ideas, are more effective than a team working remotely – and which in many cases never meet or hear of the other side’s involvement.

Yet, an in-house team that demand a salary is costly. Unless your staff are multi-tasking and earning their pay by accruing a return on your investment.

It is often the case that the best solution is a combination of the two. But pulling projects together requires the ability to manage multi-disciplinary areas to a high-level of competency.

The important factor for business owners is to make sure you assemble a talented team of reliable experts around you to generate ideas and make the decisions, then use outsourcing channels to produce the goods.

For established businesses the recruitment option is more likely to be preferred but remember, if you were buying a piece of equipment you would assess the return on investment (ROI) so why not do the same when recruiting it’s a great way to persuade yourself that the decision is the right or wrong decision.

On the other hand for start- ups it is likely that outsourcing is a really cost effective option to gaining professional resource.

If you want to know more just call us, we always happy to help and share stories of client journeys in respect of this dilemma.