When Outsourcing Isn’t Enough: Part 2

Consociate Media owner Rudy Heinatz has been sharing insights and tips on the synergy that can occur between companies during outsourcing. He speaks from the experience of seeing an initial, small-scale outsourcing foray with Principle Strategies blossom into a productive, two-way relationship. In this blog post, Rudy shares his tips and insights on hiring employees versus outsourcing. 

Consociate’s initial decision to outsource was based on the knowledge that the company needed more capacity to grow, but an awareness that they weren’t ready to take on their own staff, Rudy Heinatz said.

“I knew what it would take to recruit, hire and train someone and I knew that our growth at the time would not have allowed us to do so effectively,” Heinatz said. “Once we got to the point of needing to hire, we still outsourced that function and all the of the HR administration to Principle Strategies. The time that we save by outsourcing that function is crucial to the operation of our business.”

Outsourcing Variables

When it comes to specific functions of a business, we asked Heinatz if there are some that lend themselves to outsourcing more than hiring someone to handle them? He responded by saying the functions that lend themselves to outsourcing will vary from business to business.

“For me, the decision to outsource should be based on a couple of factors. One, as the owner, is it more valuable to my business for me to be able to focus time on functions other than what I am considering outsourcing? And/or two, will outsourcing provide the function in a more effective or efficient manner than I can realistically do in-house?”

The Danger of `Bad Hires

Consociate had to go through the same decision-making process that its clients go through in determining to outsource market and communications functions, Heinatz said.

“For most of our small business clients, they would not have the time or expertise to develop an in-house communications program such as what we can provide without having to hire multiple people, which most could not afford,” Heinatz said. “We do not have the expertise as part of our company to professionally run HR operations and could not justify the resources to hire someone to do it as it is less than a part-time function for us.”

The professional HR services provided by Principle Strategies saves Consociate time and money in the long run, Heinatz said.

“Making bad hires is very expensive and cannot be recouped,” he said. “As a small business, we could not sustain it.”

Interested in learning more about outsourcing elements of your business to help you grow? Contact Principle Strategies.

Read Part One of the series here.

2016-01-06T21:22:02+00:00Human Resources|