WHY COMPANIES OUTSOURCE STAFF

outsourcing

Staff outsourcing has been around for the last several decades. However it remains a misunderstood concept by both employers and employees alike.  As such the vast majority of employers would require some sort of education on the concept before making the decision.

However staff outsourcing is a surprisingly simple concept. Major, its built around the core business concept.  What does this mean? Every business has the main reason why it was started. Wherever you are, and no matter the size, you are unlikely to find a business that is unaware of the reason for its own existence.

For instance, if you are a manufacturer, your core business would be to produce the best products in your area and deliver the same at the best possible prices. Success in your core business means success for the entire business. It means more profits, regional and international expansion as well as the accolades associated with success. It would therefore make sense to devout all your time and energy as a firm in becoming the very best in your core business. In so doing this could mean subcontracting some of the internal processes to experts with a view to saving the much needed time and energy.

One such area of sub-contracting is in staff management. Usually companies with a large number of homogenous staff tend to experience unique challenges that require plenty of time to keep them under check. Over the years, companies have discovered that outsourcing homogenous staff suddenly creates a boom in time and energy for the managers to concentrate in their core business. These headaches can now be deal with by a professional contractor. In return for their efforts the professional fir will earn commissions

Another major reason for outsourcing staff is the savings associated with the exercise. The core business of most staff outsourcing firms is people management. As such they are continuously improving on the processes that go into making human resource productive. Most of them manage large number of staff. As such they have achieved economies of scale and can help their clients achieve the same results at a much lower cost. In many cases staff outsourcing firms are able to continuously provide skill improvement trainings to their clients. They also provide the much needed guidance and compliance support, all at no extra cost.

Any company that has outsourced staff before will attest to the fact that these benefits are indeed real and form a necessary part of any serious growth process.

By David Kimani