Outsourcing is gaining popularity as a way for businesses to stay on their toes and provide excellent products to their customers. As remote work and staffing shortages have become more commonplace, so too has outsourcing. Being able to source products or services from outside one’s own business allows teams to focus on their strengths and expand in new ways. As a business leader, you may have considered outsourcing but have yet to pull the trigger.
Knowing when to outsource is tough, and the timing is different for every company. Outsourcing for a small startup is different from outsourcing for a major corporation. However, there are a few key reasons to outsource rather than hire a full time or even part time employee. Keep reading to discover three reasons to consider outsourcing when you’re operating with a skeleton crew.
1. You Can’t Find the Ideal Candidate
The first sign that you need to outsource is if you simply can’t find the right candidate to hire full time. This is all too common in today’s unpredictable job market. You may be spending all of your precious working hours scouring LinkedIn for leads. This isn’t productive for you, especially if you aren’t having much luck. Time is money, and you should be spending your time on initiatives that will move the business forward.
Here’s a common scenario to understand the benefits of outsourcing. Let’s say you are looking to redesign your website. In order to make a splash in the marketplace, you’re likely looking to hire a user experience engineer. This position is always in high demand, making it more difficult to find the right candidate for the job. This is when you may consider working with an engineering staffing agency.
Agencies are knowledgeable in your hiring needs, and can help you find an individual who is fit for the role. They can also take your needs into consideration, including contracted or outsourced positions. With this information in mind, they can likely get your desired position filled much quicker than you could alone. The initial costs of hiring an agency will pay off in the long term, as you can get the job at hand done faster.
2. You Need to Cut Costs
Another reason to outsource is if you simply can’t afford to hire anyone else permanently. Hiring is expensive. Besides an individual’s salary, you also need to think about a compelling benefits package. Then, of course, there’s the recruitment costs of finding this new hire and onboarding them. While recruiting and onboarding is still necessary with outsourced positions, it’s scaled down significantly.
Moreover, the turbulent economic situation today is a prime reason to outsource. You simply may not be in the financial situation for more full time roles. This is especially true for startups who are operating on limited budgets as they wait for funding. But to remain competitive, you need to have staff to help support your growth. Overworking anybody isn’t sustainable, particularly if you are already operating with a limited staff.
An outsourced employee is likely already trained in the role that you need. Because of this, you and your team don’t have to spend as much time training. A contracted position also has a different pay structure. You are likely paying this individual on an hourly or project basis. This means there is a direct correlation to their output and what you are paying them, a significant difference from a salaried employee.
3. You Can’t Keep Up with Demand
Now, being too popular is a good problem. Except when you and your team find yourselves working around the clock to fill orders. There is only so much you can do alone without reaching your breaking point. Outsourcing your needs when your products or services are in high demand is a smart move. This short term nature of an outsourced role means you can lean on these individuals when you need them most.
You may be asking yourself if you can plan for a period of high demand to get ahead of things. Well, you may have a new launch approaching and can predict an increased interest. Or, maybe your products are perfect gifts, so you should hire outsourced employees during the holiday season. For these cases, you can look for contracted talent ahead of time and plan their start and end dates.
Not everything can be predictable, however. Your social team may post a TikTok video of one of your products that goes viral overnight. Or, maybe a major news or media outlet profiles your business as a new one to discover. Immediate success can be thrilling, but you need to figure out how to scale strategically. This is when outsourcing can be the most beneficial.
Outsourcing is a strategic business move. If you and your team are running out of battery power, outsourcing can help save your mental health. This cost-saving tool can benefit you during times of scale as well as times of surgency. If the idea of outsourcing is crossing your mind, chances are your company is ready for it. Use it as an opportunity to find talented individuals that meet your business’ needs.