Hire vs. Outsource: Which is Right for Your Small Business?

As a small business grows, there often comes a time when leaders have to make a decision. Should they hire additional employees or outsource to a third-party provider?

Many business leaders face this difficult decision. The answer is: it depends! One size does not fit all. Today, we’ll look at some pros and cons for each and then consider the questions a business can ask to help make the right call.

Pros and Cons of Hiring

One advantage of internal hires is their level of investment in the company. This plays itself out in many different ways, including:

• Internal employees are immersed in the company culture. They understand the ins and outs of what makes the company tick.

• Whether onsite or virtual, internal employees know the right channels to communicate. They can collaborate well between teams and with each other.

• Companies have more control over employees, the hours they work, and asking for overtime when necessary. They can recognize the personalities that fit best within the culture.

One big hurdle to growing an internal staff is the cost to recruit, hire, train, and retain employees. Another downside to hiring is that leaders have to consider what happens if an employee decides to leave. This often leaves a gap the business will be hard-pressed to fill immediately. Luckily, turnover is not an issue with local outsourcing.

With over 500 highly-trained individuals, you will never have to worry about an employment gap with Ohio Valley Goodwill’s B2B services!

Pros and Cons of Local Outsourcing

The most compelling ” pro” of outsourcing is cost-savings. In general, businesses can benefit from up to twenty to 30 percent savings by outsourcing key services to a third-party provider. Some businesses even report upwards of 30% saved due to outsourcing! In today’s highly competitive market, this level of cost-cutting will be attractive to any small business.

Other advantages include time savings and flexibility. When you outsource with a reputable company, you can rely on consistent quality output with minimal setup or overseeing time on your part. Businesses can gain more cashflow adaptability by being able to scale back output and costs during slower times.

Like all good things, there are potential drawbacks as well. If communication between the company and the outsourced workforce isn’t direct and clear, vital company directives can be missed.

Selecting a highly-rated company will help ensure this doesn’t happen. Ohio Valley Goodwill’s Industrial Services Division has been serving businesses in Cincinnati, Northern Kentucky, and Southeast Indiana for decades, helping them reduce overhead costs, streamline operations, and boost productivity. 

Making the decision

When deciding between hiring or outsourcing, consider the following:

Is the function or process essential to your company’s core competitive advantage?

Since many businesses outsource to be able to focus on core initiatives, it makes sense that these tasks should remain within the company. Outsourcing these critical functions may threaten your advantage in the marketplace. It can also undermine your key employees who you hired for their expertise in these areas.

Conversely, non-essential business functions can drown your staff in time-consuming tasks they don’t have the desire or skills to do. Local outsourcing reduces in-house time spent on these routine tasks and increases the company’s efficiency.

With Ohio Valley Goodwill‘s outsourcing services, companies enjoy greater attention to critical functions. But don’t just take our word for it! According to one of our partners, Peggy Delaney, Controller for Performance Plastics, ” Goodwill has decreased our labor expenses and allowed us to focus on our core business.”

Do you have resources to devote to recruiting and training new hires and managing a larger staff?

Most small business leaders understand recruiting talent takes a lot of time and effort. Before you decide to hire more employees, ask yourself if this is where your leadership’s time is best spent.

Remember, if the work you’re trying to complete is a core business function, it’s well worth it to recruit the best internal talent. If it’s not, it might be best outsourced to a company that already employs the skills you need.

When you’re looking for quality local outsourcing services, look no further than Ohio Valley Goodwill! That’s right””the same Goodwill that’s well-known for donations and retail stores is also an expert in offering packaging, kitting, fulfillment and assembly services in Cincinnati.

Contracting with Goodwill is not only the process of outsourcing, but it is a partnership as well. We provide local contract labor to service the Tri-state area and train them specifically to your project to support your business. When you outsource to Goodwill’s Industrial Services, you can concentrate on your core competencies and streamline your operations.

By partnering with Goodwill, your business becomes a part of our non-profit mission to change lives through the power of work. See how your business can make a difference in the community and help individuals with disabilities gain meaningful employment””let’s talk about your local outsourcing needs! Contact us to receive a free quote and take a tour of our facilities.