Now and then, your business may require some additional help. As such, you might think about hiring new employees. Instead of doing that, you should consider two other options: promoting someone or outsourcing. All of these options present advantages over hiring new people, but which is better for your business? Let’s take a look at some of the key points.
The costs
Both promoting and outsourcing are cheaper than hiring a new employee. If you promote someone, you would need to make an adjustment to an existing employee’s salary and potentially pay for training. The exact cost varies, depending on how much training is required and how big of a salary increase the employee receives.
On the outsourcing side, the costs are limited to a set payment. This is usually made per month, or it can be paid in full and renewed at a specific date. Either way, it can end up being the cheaper of the two options, depending on the service.
If you hire a new employee, you have to fund the cost a full yearly salary. Other costs you would need to consider at a minimum, are recruitment, benefits, and training. This is, by far, the most expensive option.
The training
As mentioned above, promoting employees could require additional training. The extent of this varies based on what position an employee is being promoted to. Still, as these Coassemble reviews show, you can handle all of the training in-house via an online platform. You would not need to worry about the cost of an instructor. The employee would also be able to complete the training at their desk or home office. They would still be available to attend meetings and maintain a level of productivity.
With outsourcing, you have the benefit of no training at all. Indeed, this is one of the true advantages of outsourcing for businesses. The people you pay to do the jobs are already fully trained. Therefore, you pay them, and there’s no training period to worry about.
If you hire a new employee, unless they worked for the company before, they will have a significant learning curve. They will not only need the training but they would need to go through an orientation process. They will also need to learn and adapt to the company culture.
The work
The quality of work is impossible to compare. A promoted employee may provide better work as they have a deeper understanding of your business. They know what you’re looking for and have a close relationship with other employees.
However, outsourced companies or freelancers may have more experience in this line of work. So, they could perform better than a promoted employee. As an outsourced member of the team, they know how to engage, ask the right questions, and ramp up quickly. When it comes to the work, this one is up for debate when choosing between promoting someone vs. outsourcing as and this is often the hardest question to answer.
However, a new employee will be familiar with the type of work; they will not yet know how things are done at your business. They may need time to observe and get up to speed.
The impact on your business
Finally, all of these options impact your business in different ways. Promoting an employee boosts company morale and employee satisfaction. How? Because employees are now aware, they can be promoted for performing well. It can encourage more people to keep working for you, lowering your turnover rate.
Outsourcing can benefit your business by reducing costs and (potentially) improving the work output.
A new employee could offer a fresh perspective, but you would have to seriously weigh the cost to see if that would be the best possible decision.
Realistically, all options work well in different scenarios. If you have a new job opening that can be filled by one person, promoting an employee make sense. You boost company morale and reward high-performing staff. If you need to hire multiple people for new roles – or to form a team – then outsourcing is the more cost-effective option. If you are looking to add a fresh perspective, a new employee could be the right choice. Essentially, you have to find the right balance between all of the methods and determine what benefits your business. These key points can help you make the best decision. Hee’s to YOUR success!
Carolyn R. Owens has over 25 years of proven experience and serves as a Career Strategist, Executive, and Leadership Coach. She is the President of Infinity Coaching, Inc., where she can help you up-level your skills so that you can up-level your income, career, business, or life. Infinity Coaching, Inc. provides organizational training and one-on-one and group coaching. Carolyn is certified to give both The Energy Leadership Index Assessment and Myers Briggs Type Indicator Assessment. You can find out more about both assessments and other products and services at https://infinitycoaching.net.
