Outsourcing vs. Hiring In-House Workers for Your Business

Small businesses are often confronted with the dilemma of outsourcing vs. hiring in-house. Analyzing the pros and cons of outsourcing vs. hiring full-time staff is a common agenda on the table for a decision.

Sometimes certain tasks or services require specific skills and equipment or short-term, limited, or seasonal needs. During these times, maybe you need extra help but don’t really need a full-time employee for it. Hiring a great recruiter is a form of outsourcing when you consider the hiring exercise could be time-consuming and stressful. You’d probably hire in-house if you need an on-site employee who is required to take on an active role in a project and would not require extra pay when projects run long. However, you may give it a second thought if you consider the cost of employee’s health insurance and savings benefits. On the other hand, outsourcing could be cheaper as most contract employees don’t receive expected benefits and may provide their services at a flat rate. Conversely, you may feel insecure about the possibility of exposing the intellectual property of your company to an unreliable source.

When you face the predicament of outsourcing vs. hiring full-time staff, here are some tips to guide your decision.

Long Term Project Goals

Maybe you just need help with one or a few short-term projects. Or perhaps you’d prefer to hire but are uncertain whether you’ll be able to offer regular assignments during the pandemic or even after that. Maybe if you can hire someone on a contract basis with the goal to employ them in-house in the near future. Analyze your specific needs and plan what you can rationally commit to. Consider your current circumstances, organize the tasks in a manner that immediately engages the short-term assignments while the long-term ones are deferred for in-house hiring.

Be Transparent

If you decide to hire, be upfront with your requirements, expectations, and what monetary and other benefits you can practically offer. You might be able to procure a great candidate who is out of work and willing to take an opportunity simply because a better employment opportunity is unavailable. This is especially true right now, with several people out of work due to the pandemic. Transparency is critical to help each side make the most informed choice and avoid awkward situations in the future if you cannot retain someone you have hired.

Get Creative

If you don’t require someone with specialized skills and you’re uncertain of the plans and requirements of your business, there could be ways to meet your business’ demands without hiring regular employees. You can opt for offering internships or hire a more inexperienced person who doesn’t completely depend on your wages. If your city has an agency that places persons with developmental disabilities or provides vocational rehabilitation services, find out ways to give that additional help that will also serve your community.

Develop Relationships

Perhaps you need long-term help but are uncomfortable with the risk of taking on a long-term employee. Creating positive and mutually beneficial connections with independent contractors and freelancers is also a good method to find reliable workers who know their jobs and your company well. If you treat them well and give them regular assignments often, it will be nearly equivalent to having in-house workers.


Whether you work with independent contractors or hire employees, it is necessary to communicate well with your staff about where the business is going, how it’s faring, and the challenges it faces. Nobody wants to be without a job. However, it’s worse to be blindsided after believing everything’s fine. Your employees will appreciate your honesty and will be more likely to get back on board if and when your business recovers completely.

These tips will help if you find yourself in a predicament of outsourcing vs. hiring in-house. The insurance experts at Pittman Insurance Group, LLC are available to discuss and answer any queries you might have about commercial insurance. Contact us right now to get answers from our experienced representatives.

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