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Employ or Outsource – what’s best for you?

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One of the main issues that stops small businesses from growing is the confusion around how best to grow your team! The big question is how should you work with the person? Should you employ someone? or outsource the work?  

Every circumstance is different, there is no right or wrong answer. It depends on your plans for the business. Being clear on your vision will help you identify how best to add team members to your business. 

 

Questions that will help you identify which may be the best route for you.

1.            What are your timeframes?

How quickly do you need the work done? This may influence whether you get an outsourcer to do it or employ someone. Going with an outsourcer will enable you to hire someone who has the skills and will hit the ground running so will not need training.

2.            The work you need done is it continual or does the work have a finite period?

For example a sales role for the business would be a continual role whereas a website redesign would have a finite period and end date.

3.            What skills do you have and need?

Review your current team – do they have the skills you need for this project? Can they take the project on if you get someone to help with their work?  Also the skills you need – are they just for the short term or will it benefit your team to have them longer term?

 4.            Will you get better results by outsourcing the work over employing someone to do it?

Review the options between outsourcing and employing, which will give you better results for your business?

 5.            What is your budget?

The difference in cost between outsourcing and employing must be taken into account. Often if you outsource it may be more expensive, though when you review the cost of employing and training someone to do the role it may balance out for a short term project though over time it may be more cost effective to get this skill in-house.

 6.            Does the work need the person to be aligned to your company culture?

A permanent employee if interviewed correctly will probably be bought into your business more than an outsourcer, they’ll be passionate about the vision and mission and their involvement in diving the business forward.

 Outsourcing your customer service or sales would may not be best for your business as they may not be truly aligned to your company culture and so may not deliver the servicer that you expect to your clients. While having your sales in-house may be best as they will know the ins and outs of your business while an outsourced company may miss the daily changes or updates.

7.            What are your businesses long term goals?

 What will your business look like? Will you have a large team around you or will you outsource most of the work? So the position you are looking to fill are you looking for a quick fix by outsourcing and should you be looking to take on a permanent person?

You don’t have to go straight into employing someone on a permanent basis working full-time. A permanent employee doesn’t have to be full-time, they can work part-time. For example they could work five hours a week, one hour a day or  one day a week. It is a permanent position, by that I mean you don’t see an end date, so you might need somebody to, every Friday answer the phone for you.

Here are some of the different ways you can work with people:

1.            Outsource

You can outsource the work to another business.

2.            Contract

Contracting is basically someone who will come in to your business and work with your business on that particular project for a month, three months, or whatever the length of that project. this is similar to outsourcing but the person is usually onsite.

 3.            Temping

Temporary people can work for you as little as a day (maybe less) or a week – they can work longer, but they are a stop gap and not a permanent solution. 

4.            Fixed Term Contract 

A fixed-term contract, it’s like you are employing the person, but there’s an end-date, so you could take them on for three months on a fixed-term contract. If things work out, and if there are more projects for this person to do, you can extend it. If there aren’t, then come the end of the three months, or whatever period of time you decide, their contract has ended and they leave.

So have a think about the type of work you need this person to do. Is it something that has got a finite end, a finite period of time on it? Or is it something that’s more reoccurring, so therefore you need them to understand how your business works, understand your culture, understand what it is that makes you deliver amazing service to your clients.

 Outsourcing is the obvious solution if the project is a short term, one off project. Investing in your staff to improve their skills is definitely more beneficial for the long term.

If you have any questions, please don’t hesitate to ask or comments below. Or schedule a Discovery call so we can work out which is the best route forward for your business.

 

 

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