When you look to fill different positions within your company, you may want to resort to outsourcing. Outsourcing has many benefits, including gaining a competitive advantage, and the market may be shifting to make outsourcing more common.
Lessen Direct and Indirect Costs
Hiring for a new position can lead to many different costs. According to https://toggl.com/blog/cost-of-hiring-an-employee three big costs that come along with a new hire are job board fees, conducting background checks, and training the employee. In outsourcing, you can avoid these three big costs. There are different services that companies can outsource such as recruitment, digital marketing, IT, customer service and many more. If you’re looking to outsource your customer service, BPO in the Philippines will definitely lessen your costs without sacrificing the quality of service. You are well-assured that the agents handling your IT and customer service are experts and already have adequate experience in this field.
Job Board Fees
Posting the position on job boards such as LinkedIn or ZipRecruiter could potentially cost you hundreds of dollars. It costs as low as $249 to post a position on ZipRecruiter, but that is also a monthly fee. ZipRecruiter also may not attract as many applicants as some of the more popular websites. The current cost for posting a position on LinkedIn is not a set fee. Instead, it is $1.20 to $1.50 per click on the ad, so you may not know how much you will have to pay in these fees.
Conducting Background Checks
The cost of background checks can vary from $10 to $500. This price will depend on what kind of information you would like to include in the background check. Checks that just look for criminal history are relatively cheap. However, when you are looking for education and employment history, it can get more expensive.
Training
Once you have selected the individual that you would like to hire, you must pay for their training. Not only will you potentially have to pay the new employee to go through the training, but you will also have to pay whoever trains this new employee.
Outsourcing with the best contract manufacturing company can help eliminate these costs. While you must pay the company you are outsourcing to, that fee may be less than what the above costs accumulate to.
Save Time
Time is an incredibly important factor that you must consider when you are thinking about outsourcing. The costs mentioned above are the direct costs that can go into the hiring process, but time is an even bigger cost that cannot go unnoticed. The time you spend hiring a new employee can cost you money indirectly. The time you may waste hiring is time you cannot spend performing other company operations that can help make the company money, and become more competitive.
Choosing to outsource can save you time. Time is impossible to put a price on, which is why it is so valuable. Since time is viewed as a potential opportunity cost, you must try and provide an estimated value for the time that would have been allotted to those tasks. Depending on your value of time, this could make your decision to outsource very easy due to the amount of time you would save.
Provides Expertise
You may be able to avoid the costs that are mentioned above by filling the position you are looking for with someone in-house. However, that individual may not have the expertise to complete the job efficiently due to their inexperience with said job. Also, you would then need to look to replace the production of the individual you just tasked with said job.
This is another benefit of outsourcing. The company you outsource to will have the expertise for the specific job. Outsourcing provides you with someone who is extremely familiar with what is required for this job, and should not need any assistance to perform the job at a high level. Expertise may not just mean a lot of experience though. Those who may be available to outsource could be highly educated, which may provide value that you could not have gotten anywhere else.
Choosing to outsource can be a difficult decision because of all the different factors that must be considered. When you make the decision you have to do what makes sense. If you are able to minimize costs then outsourcing might not make sense to do. You just have to choose what is best for the company and what will end up making the company a bigger competitor in the long run.
