In this article, we will show you why current challenges require smart solutions and why it’s time to scrap the old methods.
What’s the problem?
Have you ever faced a query when you need a team with rare skills next week, but you have no time and desire for searching and testing them? So, you meet a real dilemma: to spend incredible effort on searching and approving candidates or be satisfied by the work and number of in-house employees.
But in today’s world, when both profit and market share depends on the rate of a company’s response, such misstep as understaffing leads to failures. Besides, it also violates the main principle of modern business: right people + the right time = success.
Staff leasing vs. good old onboarding
The old methods worked in old conditions when there was a lot of time for the selection, training and internship of candidates. But today there is no chance for long onboarding. Speed and expertise come first.
The traditional ways of recruitment linked various problems and cause lots of fair questions:
- Where to find a good employee?
- Does the local market offer talented people?
- Does word of mouth still work effectively?
- Is Upwork a good idea for hiring?
- How to predict the search duration?
Well, our verdict on the old hiring style is:
- expensive;
- too long;
- unpredictable;
- high risky.
Even if you find a player quickly, there is no guarantee that he knows how to play what you need. So, there’s no guarantee that you won’t start the exhausting searching process all over again. Is there a way out? Sure, you can pick a partner to find and staff your team or lease a job-ready team yourself. So, the first way to reduce staffing costs is renting a team or several workers.
7 why’s the rental staff is the first way to reduce costs
- You save valuable time on searching, which can take months, especially if the rare skill is needed.
- You save money on newbies’ training cause you don’t pay for rookie mistakes.
- You save HR working hours on employee’s proceeding.
- You save cash on workspace equipping.
- You get as many employees as you need. It’s especially cool if you staff the team from scratch.
- You don’t have to fear looming deadlines because you can specify the desired terms of tasks.
- You don’t have to worry about the search process because all these questions fall on an external manager.
The more people you need, the more reasonable the advantages of outstaffing: speed, individual selection, guarantee of results. If a modern company fails to assemble a team and close technology gaps, it will present a customer to a more nimble competitor. The early bird catches the worm.
However, this is not the end of miracles. While outstaffing closes employee needs quickly and efficiently, dynamic team control reinforces the effect of a leased team.
How does dynamic control save you money?
The second way to save staffing costs is dynamic control. It suggests the ability to quickly and clearly define what employee will be needed tomorrow, in a week, at the end of the project, and to attract them to the team. Running the team in such a way means:
- to add or pause employees if their skills are not needed yet;
- to reduce or increase the workforce for managing productivity;
- to avoid unnecessary labor paying by replacing irrelevant skills with needed ones.
Besides, dynamic control allows avoiding the time-consuming and nerve-wracking firing process. You simply stop cooperating under the contract and negotiate again if everything is comforting.
Still, financial transparency strengthens the effect of such control. Leasing and optimizing the team, you know exactly the level of skills, cost per hour, and the amount of work performed.
Recognizing these two staff supervisions ways you can already save a lot of money and effort. Moreover, the next way will help you scale your business without the fuss and losses.
Why scaling with contractors is painless and profitable?
Scaling up a company means expanding the business. It can be different:
- expanding an existing department,
- opening a new office,
- developing new niches or markets.
In any case, the shortage of employees is predictable. Just imagine how much of a headache assembling a full-fledged team will bring. Though, a wise decision would be to hire just one fighter for this particular battle — a talented contractor who will assemble a team capable of new challenges.
Proofs and reasons: TOP 5 staff leasing examples
- In 99% of cases, the contractor’s rate is lower than the local employee’s rate.
- You are not limited by geography and can choose people all over the world.
- You can assign an external partner to interview, supervise interns, etc. Any whim can be specified in your contract. So, it will ease your life
To prove our point we have selected 5 examples of the brightest companies that actively and successfully renting workers. Let’s start with the trumps.
All-powerful Google
Google offers hardware, software and advertising services. Its employees are located all over the world, so when you run an ad campaign in Warsaw, you can be sure that you can talk to a Pole about all the technical problems. Main outstaffing directions: technical support, emailing process, AdWords hotline and customer support.
E-commerce giant Alibaba
Alibaba is based in China, which keeps production costs locally low, but the skills needed for further development are not available regionally. So, Alibaba outsources website development and support in the U.S. You can estimate the result right now. Main outsourcing directions: web site creation and technical support.
Well known WhatsApp
As early as 2012, WhatsApp was a small organization with only 30 full-time employees and five part-timers. Based out of Mountain View California, they understood that if they wanted to grow, they needed to keep costs down. For WhatsApp, Russia was the solution, and they sourced Russian developers for a small part of what they would have had to pay to American devs. Main outstaffing directions: software engineering
Irreplaceable GitHub
GitHub is one of the most powerful resource for developers. Launched in 2008, it quickly became a “go-to” repository for devs looking to share information. But, it was not suitable for code snippets. That’s how the Gist idea came about. But the founders did not have enough money to do the work themselves, so their solution was hiring an outsourced developer as a Git contractor. Main outsourcing directions: software engineering.
Unsurpassed Apple
Apple started with the simple desktop became one of the chief innovators and then totally changed the world of music and mobile phone technology. Still, while Apple designs excellent products, it does not manufacture them all by itself and depends on multiple partners in the US, Asia, and the Far East for producing hardware and services. By outsourcing manufacturing facilities, Apple can focus on its core power — designing great products that people like. Main outsourcing directions: device production.
Review
While writing this article, several conclusions have matured:
- Even if you know what an engine is and how it works — it is better to entrust the repair to an experienced master, who has successfully repaired more than one car.
- The world today is flexible and rich in opportunities that are unwise to miss. Today, an organization can consist of several teams in different parts of the world and bring much more profit than a classic local firm.
- It is normal to have no money to form a huge department. But it is shameful not to use modern ways to quickly and economically increase the staff.
Today everything is possible. Especially if you are with the right people in the right place. Check out our blog and get to know a lot of interesting outstaffing tricks.
