According to a recent study, 70% of new businesses fail within the first year. The main reason? They try to scale their company by hiring more staff before sustainable growth is established. In turn, costs tend to balloon beyond what their returns can cover. If your business is facing a situation like this, it’s important to think about what you can do to ensure flexibility and scalability, while efficiently managing costs.
Both growing companies and new businesses contain much potential; and they can be extremely lucrative. Luckily, outsourcing allows you to decrease overhead expenses, allowing you to hire a full team offshore while making sure to keep your income growing at a steady pace. But you’ve got to make sure to overcome some hurdles to really rake in returns.
Common Business Pain Points
Outsourcing allows new businesses to be more flexible, especially when they encounter problems such as these:
In-house Hiring Costs Are Too High
In the U.S, the cost to hire a single employee falls at around $4,000. Multiply that with the number of employees you need — and that doesn’t even include the cost of work equipment and benefits. On the other hand, by outsourcing a team, you’ll only pay the stipulated fee to your provider, and they’ll cover the costs to hire and onboard, as well as the cost for the equipment they’ll use day to day.
Difficulty in Finding Skilled Candidates to Fill a Role
The average time it takes to fill a position is around 42 days. The time and resources to find new employees can certainly be limiting, especially if you’re on a deadline and need to start operations right away. High turnover rates can exacerbate how hard it is to find them!
Not Enough Concurrent Staff Due to High Turnover
New opportunities for employees can pop up elsewhere, resulting in a high turnover rate. Last year, the average turnover rate in the US was estimated to be at 57.3%. Your in-house headcount may not be enough to cover an increase in workload because of this. Moreover, finding new employees to fill the positions could definitely eat up more resources
When you outsource, though, the struggle to hire and replace staff is shouldered by your outsourcing provider. They can make sure to have employees available around the clock and can hire new candidates in case the need arises. They’ll handle everything from sourcing, pooling, interviewing, and training.
Lack of Time and Resources to Train and Supervise Staff
Your profits rely on how much work gets done and, with so much on your plate, things can easily fall through the cracks. Since being a business owner entails many responsibilities and tasks, managing your staff’s productivity shouldn’t eat up your time.
No Clear-cut, Scalable Processes
Creating a process flow saves time and creates a standard blueprint for your growing team to follow. Having a scalable process flow means it’s that easy to replicate no matter how big your business grows.
Benefits of Outsourcing
With all that said, how can you generate more profit, while expanding your team, all while decreasing overhead expenses, to boot? Growing companies are taking advantage of outsourcing. It’s about time you try and outsource a dedicated team through a reliable partner and experience these benefits:
No Need for Overhead and Infrastructure
You don’t have to upgrade office space or cover the steep costs to keep everything afloat. Outsourcing partners provide desks, computers, internet connection, and even complete office facilities for your offshore team. Your team is also compensated, which is taken cared of by your outsourcing partner.
Hands-on or Hands-off Recruitment
Recruiting just got easier, since your partner can source and hire the right talent for you. You can be as hands-on or hands-off as you like. Your partner’s recruitment team will exhaust all resources to find the perfect candidates to fit your profile.
Lessen Staff Turnover
Your outsourcing provider makes sure to have employees readily available on board, and can handle everything including sourcing, pooling, interviewing, and training.
Round-the-Clock Support
Your outsourcing partner can help you set up a shifting plan for employees to fill up your roster, making your business easily accessible beyond business hours.
Tailor-fit Processes and KPIs
Choose an outsourcing company that can apply a personalized touch to your business: they’ll get to know your current situation, create concrete and executable goals, and continuously monitor with KPIs patterned to meet your goals.
Scale your company and grow with FGC+! Outsourcing solutions that are one step ahead — now one click away. Enabling dedicated teams for functions across different industries. Growing companies such as yours can take advantage of outsourcing for areas such as IT, Digital Marketing, Accounting, Payroll, and HR, and Customer Service. Know more through our website at www.fgcplus.com!