As a small business owner, it is likely that you are doing everything possible to keep your running costs to a minimum, and this goes for everything from your staffing to the equipment you buy. Managing outgoings is hard work for any business owner and it is often the reason why many businesses fail, as people are unable to manage their cash flow effectively. However, there is something that small business owners can do to reduce their expenditures and it is commonly known as outsourcing.
So, What is Outsourcing?
Outsourcing is when a company recruits employees to work off-site rather than in-house to do certain job roles for less. You get to save money on a multitude of things by hiring reliable offshore staff and there are a whole host of benefits as well as being able to reduce your costs, such as the ability to have access to highly skilled people and the additional flexibility that outsourcing offers.
Let’s take a look at how you can save money by outsourcing some job roles within a small business:
- You can pay them a lower salary
- You don’t need to provide extras such as benefits, pension schemes, holiday pay and sick leave
- There is no need to train them
- You don’t have to pay to provide them with a fully equipped workspace
If you employ staff off-site based in a country such as the Philippines, you can pay a far lower salary than what you would pay someone in the Western world, as their living costs are notably lower. This allows you to make an immediate saving and there are other long term savings such as not having to provide them with on-going training or a work station.
The great thing about using a company that specialises in finding staff for you is that you can also save money and time on all of the following:
- Advertising for the position
- Shortlisting candidates
- Interviewing for the job
All you have to do is provide the outsourcing company with a list of everything that you need from the outsourced employee – such as what is required for the role in terms of experience and qualifications – and they will find someone that matches your requirements.
NOTE: Some business owners shy away from hiring their outsourced staff from overseas, as they worry about being able to communicate with them efficiently.
However, there are a few reasons why this shouldn’t be a concern, namely:
- When you employ people from the Philippines, English is a national language so conversing is easy
- They will stay in constant touch via Skype, email and over the phone
- You can specify if you need someone to work at the same times that your business is open
- When someone does a specialist job – such as a role in IT – they don’t require as much hands-on management as someone working in other parts of a business
The flexibility and money-saving benefits that outsourcing abroad offers are hugely beneficial to small business owners and with more people noticing these benefits; it is important to keep up with your competition and do the same.