Outsource and Save

There is a tendency for business owners to try and do it all. Often that is not the best use of resources. In a previous posting Spend Wisely – Go Part-Time I talked a little about the financial advantage of outsourcing. In particular I compared my experience as both an employee and a part-time CFO/Controller. In this article I looked mainly at two things; cost savings and best use of talent. Now let’s consider other benefits to using outside resources.

First Things First

Just to summarize, the first point previously discussed had to do with having a highly skilled employee spend most of their time on tasks that really did not require their level of expertise. In the second point an example was used to show how a company can outsource and save money by contracting out the areas that require a higher level of skill. Unfortunately, this is often the last thing a company wants to do. That can be a mistake.

Let’s look at some additional advantages to outsourcing.

Employee Satisfaction

If you have a highly-skilled worker spend the bulk of their time on tasks that really do not need their level of expertise, you run the risk of having an employee who becomes bored. This boredom can create several problems. Among these are more errors simply because the employee has lost interest, loss of an employee and the skills they offer, and even the creation of an atmosphere of discontent that spreads throughout the company. When you instead use an outsider to perform only the functions that require their higher skill level, you eliminate much of the employee satisfaction issue. That leaves the bulk of the work that does not require as much skill to employees whose talents will be better utilized. You may also find that you actually need less of this level of employee if you can consolidate some of the roles.

Flexibility to Grow Faster

By freeing financial resources through the wise use of outside talent, you are more likely to have available the funds to grow and to seize opportunities as they present themselves. I’m amazed at how willing some companies are to be top heavy both skill wise and cost wise when it comes to employees, when in fact they can get the same benefits by using a contractor on a part-time basis and realize considerable savings.

A Word of Caution

Despite all the benefits of using outside resources to fulfill these critical but less frequent needs of a company, there is one very important thing to consider. It is wise to have the same individuals provide this service on an ongoing basis. That gives them the opportunity to understand your business, while at the same time be able to offer the perspective of an outsider. Think about. Are there areas where you can outsource and save? Are you making the best use of employee talent?

If you want to know more, contact AimCFO – Contact

As always, your comments are welcomed.

Share

Leave a Reply

Enter your email address:

Delivered by FeedBurner