We live in a society where many of us wear multiple hats within our jobs. This is accurate for various roles and in every industry. Business owners, especially, are often responsible for
business operations outside their skill set. For example, business owners run their own payroll and human resources, design websites, manage business relationships, run accounts payable
and receivable, sales and capture, contract management, recruit, and write proposals. It’s not uncommon for business owners in this industry to work full-time on contract while setting up and
running their company. It’s no wonder so many small businesses fail. Owners are stretched beyond capacity and thrust into administrative responsibilities outside of their skill set. Here are a few reasons why outsourcing as many functions as possible will help with long-term return on investment.
1. Time saved on training. Anytime a new employee is brought on board, training must occur. Business owners might be training someone on skills they aren’t familiar with.
This can set new employees up to fail quickly. Outsourced consultants will need some familiarity with your organization, but they are experts who will drive the function of their job from there.
2. Money saved on efficient tools. Recruiting is the perfect example of a role that directly impacts the company’s future profit, especially for government contractors. Every hired government worker under the company means more money being funneled in. There are countless software options and websites that can aid recruiters' success. None of them are free; at least the good ones aren’t. Hiring an outsourced recruiter through Power3, for example, provides owners with expensive sourcing tools, an existing database, and a team of collaborating experts who support one another.
3. Flexible schedules. Consultants understand that business needs will ebb and flow according to priorities. Companies can become so busy that they can’t keep up. This means critical business functions are completely dropped. Time-sensitive priorities may include hiring employees before losing a contract due to a lack of hires, new hires, and company-wide open enrollment in benefits, timely payment of invoices, responding to an RFP, keeping contracts in compliance, and submitting payroll. When outsourcing, business owners can choose which processes to hand off and when to increase/decrease hours to match company needs. They can also stay in touch throughout the process without having to be waist-deep in it.
4. Expenses overall. How much does it cost a company to hire a full-time employee? While this answer can vary, employees need PTO, benefits, covered taxes, workers' compensation and other insurances, retirement benefits, technology and equipment,
expense reimbursements, background checks, mandatory training, and subscriptions. And what if you hire someone full-time but find out the job could have run effectively at twenty hours per week? By outsourcing, owners can avoid the majority of these costs because the consultant doesn’t require them, and a consulting company like Power3 already provides it.
The following are just a few of the many benefits of outsourcing overhead. At a recent AFCEA event, I met several professionals who embrace the concept of outsourcing as many operations as possible. By leaning on experts to satisfy these responsibilities, the business owner can shift their focus away from overhead and compliance and more into growth, sustainability, and
culture.
