Outsourcing Benefits

Providing a contract is set correctly between the employer and the contractor, the outsourcing process can hold many benefits to your business, some of which are outlined below.

 

To better explain the outsourcing process, we feel it is of benefit to illustrate the different ways in which you as an employer can acquire your working staff. Each of the below are very common methods and depend entirely on your desired outcome.

 

Contracted Employment:

Usually involves acquiring a suitable candidate through careful interviewing techniques and then supplying them with any necessary training to undertake the work the business needs.

 

 

Benefits:

 

✔ Provides the employer with multiple candidate choices through the interview process.

 

✔ Is most suited to roles which are endeavoured to be long term.

 

✔ Allows the greatest level of control of the candidate to the employer through contract.

 

✔ Sole focus on the business’ needs from the employee.

 

 

Drawbacks:

 

✘ Interview process can be costly in time, money and resources.

 

✘ No guarantee that the selected candidate may be able to undertake the chosen role appropriately, therefore a restart on the interview process is required.

 

✘ In-house training is required to be supplied by the employer and paid for at the national minimum wage rate.

 

✘Additional equipment will need to be supplied to accommodate the needs of the employee for their job role

 

✘ Work place pension is required to be offered by the employer, and where chosen the employer must also put in an allocated percentage of the business’ funds.

 

✘ Candidate is entitled to holiday pay, and is required to be paid on bank holidays.

 

Using an Agency:

Contacting a specialist company to supply you with whom they deem a suitable candidate to undertake temporary or permanent tasks which you set out prior to them supplying the candidate.

 

 

 

Benefits:

 

✔ Reduces the Procurement Process Time, including any Vetting.

 

✔ Removes the Payroll Requirement

 

✔Relieves the employer of a minimum notice period for ceasing employment

 

✔Saves the employer any requirement for a redundancy payment.

 

Drawbacks:

 

✘Agency member is entitled to same rights as those whom are employed.

 

✘Often a costly upfront fee from the agency business.

 

✘Can result in difficulties for the employer if the candidate moves on, or is insufficient for the allocated role.

 

✘ Can result in hidden or additional costs.

 

✘ Agency staff may still require training, despite skillset outlined.

 

 

Outsourcing:

The process of obtaining goods or services by contract from an outside supplier.

 

 

Benefits:

 

✔ No recruitment or interview processes necessary.

 

✔ Removes any Payroll requirements.

 

✔ Allows for reduction of corporation tax (or similar) as the goods or services provided are deemed a business expense.

 

✔ Instant access to the resources your business requires.

 

✔ Allows risk-sharing between employer and contractor, which can save costs.

 

✔ No hidden costs if contract is agreed in writing before commencement.

 

✔ Saving on equipment fees (the contractor should have access to their own equipment).

 

✔ Time advantages (contractor is not set to working hours when on a project).

 

✔ Ability to undertake remote work where the contractor can assist.

 

✔ No requirement to offer further work once a contract has been fulfilled.

 

 

Drawbacks:

 

✘ Contractor may not be available for work at the required time of the business.

 

✘ Contractor is available to work on other projects, possibly meaning a longer lead time on your required contract.

 

✘ Employer may not be comfortable sharing confidential information as part of a contract.

 

✘ Potential stigma can arise from the concept of outsourcing functions with the public (however this is something which shouldn't come from us!).

 

 

 

 

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