It should go without saying that outsourcing processes or services is not the right fit for every company. According to Kevin Gray — a highly experienced facilities manager from Burlington, Ontario — some business demands are best handled by contractors, provided that those contractors truly offer the company more time and money to do what they do best. Before considering what to outsource and where, employers should examine their company goals and remain focused on those goals when examining roles that could either function as payroll employees or independent contractors. Kevin Gray has graciously outline four of the reasons why companies outsource, and what circumstances must arise for a company to benefit from outsourcing.
1. Work Quality
In many cases, independent contractors specialize in ways that employers cannot. As business owners examine constraints in their business process, they may find that trying to staff certain positions in-house leads to waste and dissatisfied customers. As such, employers can open up their search to contractors that are experts in a particular role or department.
Burlington, ON Kevin Gray states that in contrast, some companies maintain contractor relationships that may actually be better staffed by current payroll employees. Perhaps a few big mistakes by a contractor, along with new skilled employees, merit employers reexamining how and when they outsource certain jobs.
2. Company Liability
Some departments, such as accounting, payroll, and human resources carry major penalties should the employer fail to remain compliant. In these situations, many employers seek out firms or individuals that are able to keep the company compliant while also assuming a majority of the liability should someone make a critical mistake.
3. Project Control
A major consideration for any employer considering is whether or not to outsource is control. Payroll employees must abide by all company policies and expectations. However, independent contractors do not work for the company. Kevin Gray notes that for employers that place strong emphasis on teamwork and company culture, it is difficult to maintain both well if most “employees” are technically outsourced contractors.
However, if the project lies far beyond the employer’s skill and experience, it may be in his/her best interest to let the experts assume control of the project altogether. Allowing contractors to work when and where they feel is best, companies can turn their focus and control on those aspects of the business in which they know that they can excel. Outsourcing under these circumstances provides great peace of mind to employers.
The most common consideration when employers weigh whether or not to outsource is cost. Increasing a company’s payroll usually involves far more expense than does outsourcing. However, many contractors charge for high quality work, since the work lies within their specialty. Kevin Gray claims that there may be some company tasks that do not require quite so much specializing (considering their role in the marketplace), and it may make more sense to attach those tasks onto the job description of another employee.
Another consideration is the level of risk associated with handing over control to a contractor versus retaining that control within the company. Losing control could negatively affect the customer experience and raise costs associated with customer retention. Of course, the flip side can also be true.
5. Kevin Gray is a facilities management expert with over 15 years’ experience in workplace regulations, human resources, facilities maintenance, project teams, and more. Based in Ontario, he currently assists employers in all matters pertaining to facilities management. For more information, visit his website.