If you're an expert, you're aware of the pressure associated with making your company the best it can be. However, an expert isn't a jack of all trades, and trying to present yourself as such puts your integrity at risk.
Outsourcing can be incredibly beneficial and cost-effective for your business. Nearly 70% of consumer products companies in the United States indicated that they used outsourcing last year. While the growth of the global outsourcing market has been unsteady, there's no doubt that it is here to stay. In fact, last year the global outsourcing market grew to $92.5 billion.
Let’s explore a few reasons why so many experts choose to outsource certain functions within their organizations.
Experts Outsource to Focus on the Bottom Line
As an expert, your main priority is focusing on helping your employees and growing your business using your expertise power. However, it's impossible for one expert to know everything about their business. Outsourcing departments where you lack expertise helps you focus on improving the core competencies of your company as a whole.
In addition to improving your reputation as an expert, outsourcing also helps your company run smoothly. You'll be able to serve your customers better since neither you nor your in-house employees will be stressed about unfamiliar responsibilities. Studies have also shown that outsourcing certain jobs could save anywhere from 20-30% of your company's spending budget.
One of the most commonly outsourced jobs is a call center technician. These specialists are trained to help customers with any questions they may have about your company's product or service. Having a group of trained professionals to assist you and your staff with customers helps everyone focus on bigger projects.
Personal assistants, website developers, and even medical professionals can also be outsourced. Outsourcing your human resources department is also one of the most helpful things you can do for your business. According to one study, allowing a PEO to help you with HR could net a potential ROI of at least 27.2%.
Experts Don't Have Time to Do Everything
As an expert, you cannot (and should not!) attempt to handle all aspects of your company by yourself. For example, say you formed a company that offers professional catering services. While you may be a master at organizing catering for events, you may not be prepared to handle human resources or payroll issues.
Attempting to learn about these areas on your own is often a waste of time and energy. Depending on your area of business, too many non-billable hours can be a serious detriment to your company. One study showed that the average sole practitioner lawyer only billed a little over two hours for each eight-hour workday.
It's also important to realize that it's not expected of you to be an expert on all departments of a company. Attempting to "fake it 'til you make it" can actually frustrate both you and your employees in the long run. In fact, acknowledging that even experts need assistance sets a good example for the rest of your team.
Experts also are not expected to be interested in all aspects of a business. Experts do their best work when they are in a good mental state. Rather than sacrificing your enjoyment of running your company, it's better to hire other professionals to help handle certain issues.
Experts Outsource to Other Experts
A competent human resources department is one of your company's most invaluable assets. Business experts are often not up to date on the latest OSHA regulations. OSHA violations can damage your company's reputation and budget, so it's important to have an HR team that can enforce these standards.
The advent of COVID-19 has also caused some confusion among many experts. This is uncharted territory for many companies, and business leaders may not know how to understand their customers' new buying habits. Outsourcing financial experts can help your company formulate an effective business model for the duration of the pandemic.
Hiring outside help for human resources can also prevent costly lawsuits against your company. If your employees are working in a potentially hazardous environment, such as a construction site, they may get hurt. HR departments manage worker's compensation and risk management so that your company can't be held responsible for these injuries. A good risk management team also ensures that your employees are working in the safest conditions possible.
Additionally, human resources can help enforce solid relationships between employees and upper management. If your company's HR department can efficiently solve disagreements amongst staff, your employees will take pride in their workplace. The higher an employee holds their company in regard, the more likely your company's employee retention rate will be.
Your staff's wellbeing is directly related to their productivity levels. The Society of Human Resources reported that companies lose an estimated $233 billion to turnover every five years. Additionally, this report states that 20% of employees resign because they feel uncomfortable with the culture of their workplace.
Outsourcing Showcases Expertise
Outsourcing important departments reduces many of the risks involved with running a company, such as large fines and lawsuits. Additionally, it can improve a company's productivity and prevent managers from becoming stressed. True experts outsource because they know how important it is to seek out professional help when needed.
Outsourcing human resources to a PEO is a proven way to grow your business. The human resource management market is expected to grow by nearly 12% over the next seven years. Partnering with a PEO is easy, affordable, and guarantees a happy, healthful workplace.
