In my last post I shared the pros and cons of outsourcing. But how do you know when to stop outsourcing and hire instead? Small business owners who are on the path to success know that they can’t do everything by themselves. Hiring employees could mean the difference between stagnation and growth. The three reasons why you should consider hiring an employee instead of outsourcing are below.
When you outsource your work to a contractor or freelancer, you end up competing against other clients for their time. Something that you need done right away could end up taking weeks if the contractor has other projects ahead of yours.
On the other hand, employees are committed to your company for the time that you’re paying them. You manage their priorities as it relates to their work assignments. Your highest priority work will be done in the order that you see fit.
Small business owners generally compete on quality more than they compete on price. Therefore, outsourcing to a contractor can be risky. Contractors don’t have a stake in your business and are often looking to complete the job as quickly and efficiently as possible. They may also provide lower quality workmanship if they believe that you’re not going to extend the contract term.
As you consider hiring employees, it’s important to understand the tasks that they’ll be responsible for. Assess their ability to complete the tasks in an efficient way and maintain the level of quality that your customers are used to.
Outsourcing sometimes puts your company at risk, especially if you need to provide classified or sensitive items to the contractor as part of the project. Although it’s easy to forget, information is still stored somewhere in the brain and you don’t want the contractor to recall your sensitive information when they’re working for your competitor.
You should have enough work to keep your employees busy for the hours you’re your paying them. Otherwise, they’ll become complacent and may end up using work time to run personal errands, come in late or leave early.
Giving employees meaningful work that keeps them busy is not only rewarding for you, but it provides the sense of contribution to the success of your business. It gives them a chance to celebrate the wins and at the same time feel confident in their own abilities to accomplish great things.