Outsource Vs. Hire In-House: Which Makes Sense for Small Businesses -

Outsource Vs. Hire In-House: Which Makes Sense for Small Businesses

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If you run a small business, you know the feeling: there aren't enough hours in the day. Between sieving through CVs, chasing invoices, posting on social media and actually delivering your service, the to do list never ends.

At some point, every business owner asks the same question: Should I hire someone in-house, or should I outsource?

The answer is not always straightforward, both options have their perks and draw backs.

When Does Hiring In-House Make Sense?

Hiring your own employee works best when you need someone physically present of deeply embedded in your company culture. For example:

  • A retail assistant who helps on the shop floor
  • A restaurant manager needed for face to face customer support

There are always roles that will require in house staff, but do you need in house staff to manage your bookkeeping for example. With hiring in-house there is some cons to consider.

  • Expensive (salaries, benefits, taxes, equipment, office space)
  • Slower to scale (recruitment and training take time)
  • Risk of turn over (if they leave, you are back to square one.

Why Outsourcing Can Be a Game Changer

Outsourcing means handing off certain tasks to a skilled team outside your company. Thanks to technology, this is easier than ever, and far more affordable.

Tasks that are ideal for outsourcing include:

  • Recruitment and Resourcing
  • Financial Support and Invoicing
  • Social Media Management
  • Lead Generation and Research

When outsourcing, there are significant cost saving with many businesses saving over 50% compared to local hires. You are given more flexibility, to be able to scale up or down as and when needed. There's no HR headaches, payroll, compliance and recruitment are managed by your outsourcing partner.

The Bottom Line

Hiring in-house makes sense when you need people physically present or deeply involved in your core operations. But for everything else such as admin, marketing, recruitment and research - outsourcing is the smarter, leaner, and faster way to grow.