Organizations of all sizes face existential questions of whether to outsource to strategic partners or retain full-time, in-house talent.
It’s not uncommon to only consider the direct costs to maintain employees and not consider the big picture. The truth is that costs to hire and retain employees are far more excessive than the salary you pay them. Companies of all sizes are looking for SMART alternatives.
Be “SMART” and Avoid the Expenses Seen Below
Society for Human Resource Management (SHRM) estimates the average cost of hiring one employee to be $4,129.
Employees have base salaries with options for bonuses and overtime. Not every month has enough work to justify these costs.
Federal and state taxes, including social security, unemployment tax, medicare, workplace insurance, and more are all unnecessary burdens for employers.
Benefits include health insurance, life insurance, disability insurance, and more. In 2018, average insurance costs per employee were $19,616.
Employees are entitled to sick days, annual leave, and maternity leave as part of benefit packages. These all directly impact your bottom line.
Physical offices require rent, maintenance, furniture, equipment, computers, software, phones, printers, internet, and stationery expenses for each and every employee.
Consider the cost of utilities like electricity, water, internet, food, cleaning, and security. Each employee also requires training, which costs time and money.
Loss of inventory, loss of work time, loss of equipment due to theft are direct business costs. Liability insurance is also necessary to protect the safety of employees.
Modern technology enables organizations to outsource many business functions and still be productive. The COVID-19 pandemic forced many companies to incorporate technology and remote work into their day-to-day operations. These capabilities have only improved since then, allowing companies to become even more lean and productive.
Today, “SMART” organizations want to work with strategic partners that can provide high-quality services, like talent acquisition, to become even more productive and more competitive. This is the SMART model that allows businesses to succeed and maximize their ROI.
Outsourcing is more cost-effective than in-house hires. You save 30% or more - plain and simple.
Streamline with outsourced talent acquisition so internal teams focus on the core business.
Strategic outsourced talent is highly specialized, thereby completing tasks faster and easier.
Adapt to market conditions without overhead burdens by hiring when and how you need.
Outsourced talent only requires payment for jobs well done. Eliminate legal costs of in-house hires.
No geographic barriers with outsourced talent. Find the right person with the right skills anywhere.
