Should You Employ Or Outsource?

This is a contributed post to JMLalonde.com. For more information on contributing a post, please see our contributing policies.

You can’t run a successful business on your own. Sooner or later you’ll have to ask for help – but do you employ someone or outsource someone? It all depends on the nature of the task that you want doing. Here are a few things to consider that will help you to decide whether employing or outsourcing is the right option.

Consider the workload

First, consider how much work you’re looking to delegate. If you need someone to answer the phone, consider whether employing someone solely to this duty is worthwhile. Unless your phone is constantly ringing or unless you have other admin tasks to offer them, outsourcing this task may be a better idea as you won’t have enough work to keep a full-time employee occupied.

With certain jobs that are temporary or only applicable on certain days, you may be able to take on a temporary or part-time employee. However, you may find that outsourcing is easier as there may only be a limited number of applicants willing to work temporary or part-time hours.

Consider the resources and expertise required

Certain tasks may require a lot of resources and expertise. If you’re hiring, you may have to invest in these resources yourself and you may find it a struggle to find someone with the appropriate expertise.

For instance, SEO can require a lot of expertise and is therefore often easier to outsource. You could spend ages looking for a suitable in-house SEO staff member who has good SEO knowledge and an extensive network when it comes to securing backlinks. Alternatively, you can find your SEO agency now and save a lot of time. The same can go for a lot of technical digital tasks like web design and app development.

As for resources, many tasks may involve having to buy equipment or pay for software when hiring a recruit. If you’re outsourcing, you won’t have to pay for these resources.

Consider your budget

In most cases, employing someone is more expensive than outsourcing someone. On top of a wage, you have to provide employee benefits and pay for any equipment they may need. You’ll also need to pay for extra insurance if you’re not already an employer. 

Outsourcing tends to be the cheap option, however the cost of outsourcing can add up if you’re outsourcing too many individual tasks. Rather than outsourcing separating services to take on phone answering, bookkeeping, email marketing, content writing and social media marketing, you may find that it’s cheaper to hire a full-time assistant to take on all of these roles.

Consider the level of trust

Trust is also an important factor to consider. Outsourcing certain tasks like bookkeeping could mean having to share your sensitive financial details with someone without being able to monitor them to ensure that they’re not abusing this information. When you hire an in-house employee, you can keep closer communication and monitor them more easily. It also becomes easier to do background checks.

Please note: I reserve the right to delete comments that are offensive or off-topic.