So, you have got more work than you can handle? Congratulations! That means it is time to build your support team. Is it time to outsource? Or to hire?
Luckily, today’s businesses have a ton of options when it comes to building their ideal team.
Thanks to the internet, the rising popularity of freelancing, and small businesses full of expertise, top talent can be sourced from almost anywhere in the world.
But this overwhelming number of choices can sometimes be confusing for business owners.
To outsource or to hire, that is the question! And if you are unsure of the answer, the following pros and cons will help to point you in the right direction.
Should You Outsource Or Hire?
Outsourcing – Pros
Flexible hours
The options are endless for outsourcing. Whether you want full-time, part-time, a few hours a week, or even on a per-project basis, you will find a freelancer to fit the role. Rather than being tied into a set contract, the hours worked can be adjusted easily.
Cost-effective
Outsourcing means eliminating the need to pay benefits, sick days, holiday pay, etc. etc. You get the services you need at a flat rate with no extras. On top of this, you can skip the expensive recruitment process, and the freelancer is responsible for providing their own equipment and tools to get the job done.
Immense talent pool
Finding a qualified candidate is much faster and easier when you have got an immense talent pool to choose from. You could work with someone at the other end of the country if they are the best fit for your business, rather than being restricted to someone in your area.
Agreed deadlines
You can agree set deadlines with freelancers or small business owners. That means you know when to expect the work and you know it will be completed efficiently and effectively.
Little training required
Small business owners and freelancers are experts in their chosen field. They will be able to do the job quicker and faster than you due to their knowledge and experience. It also means that they require very little training and can seamlessly work as a remote part of your team.
Outsourcing – Cons
Need multiple options
Freelancers are excellent at what they do and have a very strong skillset, but sometimes only in one area. If you have a varied role you are trying to cover then you may need to engage multiple freelancers at once.
Set deadlines
Most freelancers will have multiple clients on the go, so may not be able to squeeze in rush jobs like an in-house team member. You will need to give them plenty of prior notice to ensure they can complete the work when you need it.
Communication
Outsourcing work to a remote position requires an extra effort to ensure communication flows freely. You can’t just pop down the hallway to see them in their office, so planning ahead is a key part of making the relationship work.
Hiring In-House – Pros
High engagement. An on-site, long-term hire may be more invested in your team and business. Face to face interaction facilitates creativity and productivity in a different way than online communication.
Reliability
An in-house hire works only for you, so is entirely focused on and invested in your business. They have set hours and a fixed salary, so you know exactly what to expect – plus you won’t need to pay extra if a project runs beyond projected deadlines.
Hiring In-House – Cons
Cost factor
When you hire a freelancer, you only pay when you have work for them to complete. However, if you have an in-house employee, you need to pay them their contracted hours regardless of whether there is work coming in. The hidden cost of an in-house employee is often much more than you expect.
Location
A smaller pool of potential candidates in your areas means it may be challenging to find the right person with appropriate skills and experience. You may have to settle for someone who is ‘good enough’, rather than being perfect for the role.
Limited flexibility
Some weeks you will have more work than you can handle and you may need to pay your employees extra to do overtime. Whereas, some weeks there is not enough work to keep everyone busy. There is limited flexibility in hours.
Recruitment
Recruiting employees can be an expensive and time-consuming process. Plus, once you have hired someone, a fixed contract can make it difficult for you to let go of unsuitable employees.
Ultimately, the decision on whether to outsource or hire will depend on the unique needs of your business. Typically, smaller businesses with fewer resources find that outsourcing is the perfect solution for them.
If this is something you want to explore, ensure you do your homework and work with a reputable business or freelancer. Ask for reviews and testimonials to reduce the potential cons.
The easiest solution is just to give us a call here at Admin Army if you’re ready to outsource! We have a team of administrative whizzes and bookkeeping legends. We will be more than happy to wage war on those tasks that you don’t have the time to do!