Let’s face it: outstaffing is a great way to get things done.
It’s not just about saving money, though that is a big part of it. It’s also about getting access to talent that you might not have on your own team and giving yourself more time to focus on other projects.
But there are some cons to it, too — especially when it comes to the quality of work produced by outsourced employees.
In this blog post, we’ll look at some of the pros and cons of outstaffing, so you can make an informed decision about whether or not it’s right for your company.
We’ll also discuss:
- What outstaffing is
- The benefits and drawbacks of outstaffing
- The difference between outstaffed and outsourced employees
Ready to learn more? Let’s dive in!
What is Outstaffing?
Outstaffing is the process of hiring an outside company or individual to provide services that would traditionally be performed by in-house staff. The term is often used in the context of IT and engineering but can refer to any type of service.
There are a number of reasons why companies might choose to outstaff. It is common practice for employers to outsource projects that require specialized skills.
This allows them to focus their internal resources on the core competencies of their organization and maintain control over critical processes. Additionally, outstaffing can be a way to reduce risk.
By hiring an outside company, you’re able to ensure that the people who perform your services are qualified and capable of handling them effectively. And if something goes wrong, it’s not up to you to fix it — your “vendors” will handle the issue instead.
Outstaffing is often confused with outsourcing. And although it may be a type of outsourcing practice, they’re not one and the same.
While outsourcing is the practice of sending a task or project to an outside service provider, outstaffing is the use of an outside firm to provide temporary help with your operations.
This can include anything from accounting and marketing services to staffing needs.
The Outstaffing Benefits You Should Know About
Outstaffing has become increasingly popular in recent years as businesses attempt to do more with less. By hiring an outside firm to handle certain business tasks, companies can save money and focus on their core competencies. Here are four benefits of outstaffing you should be aware of.
Perhaps the most obvious benefit of outstaffing is that it can save your company money. When you outsource a task, you only pay for the work that is done. You don’t have to pay for overhead expenses like office space, equipment and utilities. This can make outstaffing an attractive option for companies that are tight on cash.
Outstaffing allows you to hire a company that specializes in a certain type of work, such as accounting or marketing. This means that your firm will be staffed by professionals who understand the industry they are working in and know how to get things done quickly while maintaining high-quality standards.
This can be quite beneficial to any team looking to complete one-time projects that require expertise in a certain field.
Access to Talent
As the job market becomes more saturated, there is less competition for talent. Companies have a variety of options when it comes to hiring new employees, so they may be willing to offer higher salaries or better benefits than you can afford.
Outstaffing allows you to get access to high-quality talent without having to pay higher salaries. This means that you can focus on your core competencies while outsourcing the work that is not a part of those competencies.
This can help you grow your business quickly without having to worry about finding new employees as often as before.
Outstaffing allows you to focus on the things that matter most to your business. You can outsource those tasks that are not a part of your core competencies so that you have more time to work on other areas of your company.
Outstaffing vs Outsourcing: What’s the Difference?
A lot of factors decide the future of your business. One of the most important is how you choose to staff your company. There are two main ways to do this — outstaffing and outsourcing.
But what’s the difference between the two? Let’s take a closer look. Outstaffing is when a company uses another company or individual to provide them with additional staff, usually on a temporary basis.
This can be useful when a company is short-staffed or has a high turnover rate. It can also be used to fill seasonal spikes in demand.
Outsourcing, on the other hand, is when a company uses another company or individual to handle all or part of its business operations.
This can include tasks like customer service, manufacturing, and even IT support. Outsourcing can be beneficial as it allows businesses to focus on their core competencies while leaving less important tasks to other companies.
However, it can also be detrimental as outsourcing companies are often not as qualified or experienced as the company doing the outsourcing. This can lead to issues with quality and efficiency, which can ultimately cost a business more money than if they had simply hired additional staff.
The Drawbacks of Outstaffing: What You Should Know
You’ve probably heard of outstaffing, and you may have even considered it for your business. After all, why not outsource some of your work to save money?
Unfortunately, there are several drawbacks to outstaffing that you should be aware of before making a decision.
One of the biggest problems with outstaffing is quality control. When you outsource work, you’re essentially giving up some control over the final product. This can lead to subpar work being produced, which can be detrimental to your business.
For example, if you outsource a graphic design project and give the designer very little direction or input into how you want it done, they may produce something that doesn’t fit with your brand or message.
This can lead to unhappy customers who aren’t satisfied with the final product.
Slow Turnaround Time
Another big drawback of outstaffing is slow turnaround time. While this isn’t usually an issue when dealing with copywriting services or social media management, it can be a problem when you’re outsourcing design projects.
Since graphic designers have to work on their own time and don’t get paid unless you approve their work, it can take them longer than expected to deliver the finished product. This can cause a lot of stress for both parties involved if deadlines need to be met.
If you outsource a project to someone who isn’t invested in your company, they may not work as hard as they could or should. They might not understand your business goals and may miss important details that can make or break the final product.
They might feel like they aren’t getting enough recognition for the work they do and will resent you for it. This can cause several challenges in the long run.
Not to mention, bringing in someone new to the team who may or may not be as invested as you are in learning the ins and outs of your unique selling proposition and marketing plan can be a serious distraction.
Not only do you want to make sure that the person or team you bring on board is invested in your company, but they should also be able to work well with other members of your team.
This can’t always be determined from a resume alone — you have to get them in front of people and see how they interact with one another before making any final decisions.
Furthermore, there’s nothing stopping them from working with someone in a similar field. Some outstaffing companies dole out related tasks from different clients to different employees. while this might protect the interests of their business, it may not always protect yours.
Deciding Between Outsourcing and Outstaffing
Outsourcing and outstaffing are both beneficial for businesses. Anyone looking for a long-term solution to their staffing needs, however, should consider outstaffing.
While outsourcing may be a more cost-effective option in the short term, it’s likely not going to last forever. As your business grows and more employees are added to your payroll, you will need to hire a full-time team.
On the other hand, if you’re in need of someone who can work on an as-needed basis, however, outsourcing might be a better option.
The Bottom Line
We’ve talked about the pros and cons of outstaffing, and now it’s time to wrap things up.
As you can see, there are many reasons to outstaff: it can save your company money, it can expand your workforce without increasing overhead, and it helps you get access to more specialized expertise and skills.
But there are also some downsides: if you outsource too far beyond your core competencies, for example, you run the risk of losing sight of what makes your company special.
When considering whether or not to outsource any aspect of your business, take into account all factors — including this one — and make an informed decision that reflects your vision for the future.