Your business is booming, you are run off your feet and need some help. Perhaps you don’t have the specific skills or experience needed to fulfil an upcoming task? So the big decision comes down to do you hire a new part or full time employee or do you outsource the work instead? Which option is the best one for your business?
Pros and Cons of Employing Staff
Hiring staff for your business means that you know who is going to be turning up to work each day. You’ve met them, interviewed them and possibly even socialised with them. They may have some personality quirks, but you can live with those. They meet your needs for training, qualifications, experience and knowledge, so you know they can do the job for you.
However, you are responsible for their hourly pay or fixed salary, ACC costs, tax, holiday pay, annual leave, sick pay, Kiwi Saver contributions and that’s not even including the actual things they’ll need to do their job. Extra furniture, uniforms, computer, internet access, mobile phone, insurance and training are also added costs. The IRD have got a helpful guide which identifies what you need to be aware of when employing your first staff members too.
Pros and Cons of Outsourcing Work
When you outsource work, you send a specific job to someone like a virtual assistant or graphic designer for them to do it for you. Jobs which you are better off paying someone to do so you can concentrate on more profitable ones, are the perfect ones to outsource.
The great thing about outsourcing your work is that your costs are automatically lower. Sure you have to pay for the work they do for you, but there are no training costs, no need to buy consumables or a new PC and no sick pay either!
On the down side, you are most probably never going to meet them in person, other than on Skype or via email. You’ll not be able to keep an eye on what they are actually doing when completing your tasks and neither will know exactly when they did or how long it took to do your work.
Should I Outsource or Hire Staff?
The answer as to hiring or outsourcing would depend on your business. Can it afford the extra costs of employing staff? Would the benefits they bring be worth the time and money they’ll expend? Are the jobs able to be done remotely or do they need to be done on site? Is it a repeating or just a one-time job?
Obviously the ultimate choice is yours, but I am more than happy to chat with you about your specific business and help you make the best choice for your circumstance. Give me a call or send me an email today and let’s keep your business booming!