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What is outsourcing and how can it help your business?
The document discusses the concept of business agility and the benefits of outsourcing as a means to adapt to market changes and reduce costs. It outlines what tasks are appropriate for outsourcing, considerations for decision-making, and provides examples of businesses that have successfully utilized outsourcing to enhance agility and efficiency. Additionally, it highlights the role of recruitment agencies in managing flexible workforces to meet fluctuating demands and improve productivity.
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What is outsourcing and how can it help your business?
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- 2. Business Agility- The ability to adapt to changing circumstances Benefits of keeping trim Outsourcing - Achieving goals without over burdening costs What to outsource What not to outsource Questioning Technique Examples of how businesses have benefitted TBC Marketing Supertemps Q & A What we are here to discuss
- 3. Business agility Response Speed internally Externally Momentum Essential Qualities Adaptability Flexibility Balance Business Agility
- 4. Getting Prepared tobe Agile
- 5. Identification ofpossible changes in market Regular Business Management Reviews Employee feedback Customer feedback Competition review Business Agility – Opportunity Recognition
- 6. Size ofopportunity / change? What is required? Resource Cash Flow Business Processes Suppliers Could you outsource, some or all of the work? What difference would all this make to the bottom line? What happens if I do nothing? Business Agility - Questions
- 7. Make adecision Do something Do nothing Set another review date Business Agility – Time for Action
- 8. Payroll Taxes HR Website Development Call Answering Agency Workers Recruitment Training Website Development What can be Outsourced • Benefits • Marketing / Brand • Social Media • Simple Tasks that Fluctuate • Deliveries • Installation • IT Support • And on and on and on
- 9. Core competences Problems Serious HR still needs key personnel involvement Managers.? When the cost is to more than employing the resource What NOT to Outsource
- 10. Questions toask re Outsourcing What am I looking to achieve? Is it simple enough to outsource? Will it cost more? Will it benefit my bottom line? Will it improve service? Can I monitor and manage it? What will it need in terms of preparation? What would my customers think? Is there another way? Self Assessment
- 11. Example – CommercialFlooring Firm Costs 1 Owner 2 Sales £50K 2 Warehouse/Delivery £40K 1 Workforce Manager £30K 6 Fitters £160K 2 Admin £32K ½ Bookkeeper £18K Total £330K - £27.5K per month Concerns Facts Ongoing Monthly Costs High Less work still the high costs Feeling Always peddling just to keep boat afloat Heavy Responsibility
- 12. Action Plan Drive in sales rather than calling out Outsource fitting Suppliers deliver direct Example – Commercial Flooring Firm Concerns Keeping Existing Customers Happy Level of new opportunities Quality of fitting Not losing customers to suppliers direct
- 13. Example – CommercialFlooring Firm Historic 1 Owner 2 Sales £50K 2 Warehouse/Delivery £40K 1 Workforce Manager £30K 6 Fitters £160K 2 Admin £32K ½ Bookkeeper £18K Total £330K - £27.5K per month Revised 1 Owner 1 Sales £25K ½ Warehouse £12K 0 Workforce Manager 0 Fitters 1 Admin / Bookkeeper £25K PPC / SEO Budget £25K Call Answering £1k Marketing Support £6K Total £94K - £7.8K per month
- 14. Are You WastingTime on Social Media? Average time spent on Social Media per 5 day week is 8 hrs 20 mins Average Return on Investment? Social Media Goal Setting
- 15. Does Your SocialMedia Bring Results? Social Media Goals Increase visits to website (sales funnel) Lead Creation Brand Awareness Sales Revenue Other
- 16. What’s Your SocialMedia Strategy? Audience Platform Objectives Engagement Results
- 17. Benefits of Bringingin the Professionals Understanding audiences Correct messages Creating engagement Professional advice Results driven
- 18. Social Media Facts •38% of organisations plan to spend more than 20% of their total advertising budgets on social media channels in 2015, up from 13% a year ago • People aged 55-64 are more than twice as likely to engage with branded content than those 28 or younger • The top 3 content marketing tactics are blogging (65%); social media (64%); and case studies (64%) • There are 40 million active small business Facebook Pages • But only 2 million of those businesses pay for advertising Source: www.brandwatch.com
- 19. Using an agencyfor aflexible workforce
- 20. Temporary workers Whohas experience withrecruitmentand selection? Has anyone ever used temporary workers? Temporary staff can be quicklydeployed to: Cope with unforeseendemand Coversickness, holiday absence and parental leave Provide extra support due to seasonal demand like the Christmas rush or financial year end
- 21. Agency worker statistics… Usingagency workers wasoften a ‘short term strategy’ for businesses. There is clear evidencethat more recently ithas developed into a longer-term approach to workforcemanagement. 91% of employers use agency workers to provide short-termaccess to key strategic skills 65% use them to respond to growth Thisis compared to only 47% who use them to cover workload peaks
- 22. How a recruitmentagency can help your business: Recruitmentagencies have a wealthof experience and knowledge, asking for their helpcould make a hugedifferenceto your business. Theycan helpyou: Save time – an agency manage the whole recruitment process on your behalf, so you can focus on your business Save money– when using anagency you are only charged a percentage of the salaryif the candidate is successful Gauge the marketplace - consultants can offer expert advice and insighton labour market trends Find specialist talent
- 23. Case study: Microenterprise – IT sector Run by the business owner with 0employees A temporary worker provided accountsand administrativesupport just 4 hours a week, allowing thebusiness owner to focus more hours on clientwork & business development. Reducedadministrative burden Business processesbecame more streamlined Tax returnwas completed on time with ease Moretime available for new businessdevelopment and networking
- 24. Case study: SME– Manufacturing 1 Director with60 F/Temployees Supertempswere able to provide a flexibleworkforce, deploy staff at a moments notice, reduce theexpense of recruiting directly AND eliminatetheneed to pay their workforce fulltime wages during periods of low demand. The business saved £8,000 per annum Increased productivity levels and reduced admin Health, safety and induction paperworkwas all completed before new staff arrived on site
- 25. 3 benefits ofusing an agency 1. Respond tofluctuatingdemand Business cycles and seasonal trends often dictate demand for staff - meet these requirements than with atemporary worker. Agency staff can offer total flexibility in the length of employment and number of hours 2. Access key skills and specialist knowledge Open up new opportunities -whether you need someone to help you do some market research, or require a whole team with specialised skills to help you fulfil a specific project 3.No-fuss solution An agency will take care of all employment formalities for you including payment, PAYE and holiday pay. You simply sign a daily or weekly timesheet for the hours worked and inform them if the worker is needed for the next day or week
- 26. About us… Supertemps isNorth Wales’ longestestablishedrecruitment agency. We’ve been helpingemployers findtalentsince 1980 Sian Williams- BusinessManager,Supertemps • Extensive backgroundinrecruitment acrossNorth Wales • Trainedby the Recruitment &Employment ConfederationandCIPD • Recognised nationallyby the Instituteof Recruitment Professionals andRecruiter AwardsforExcellence • Experience managinghigh volume recruitment campaignsforleading UK employers ANY QUESTIONS? GET IN TOUCH: [email protected] (01248) 671477
- 27. Thank You! We’d reallyappreciate your feedback WWW.SUPERTEMPS.CO.UK
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Editor's Notes
- #3 General Slide just covering content What I would say is that whilst we cant tailor this presentation exactly to your businesses we have tried to provide you with some content that makes you think, so keep an open mind.
- #4 Business Agility Definition Business agility refers to distinct qualities that allow organisations to respond rapidly to changes in the internal and external environment without losing momentum or vision. Adaptability, flexibility and balance are three qualities essential to long-term business agility. Business agility is important for larger firms looking to survive long-term and who work in quick-paced industries however for small and medium businesses business agility is often key from the off and forever. Innovation is often the key to maintaining long-term business agility. Companies that don’t innovate and rely on ‘proven’ methods of doing things often find themselves falling behind the competition because they can’t adapt quickly enough to shifts in the environment. From an HR perspective, agility is about ensuring the resources in the organisation have the skills and abilities to respond quickly to new developments and the infrastructure and processes to mobilise people into action as efficiently as possible. Companies may display business agility at certain times, in which case the agility is a form of crisis response or as many of us will know it as fire fighting, or the company may have business agility built into its structure. Agile organisations can differ from traditional bureaucratic organisations in many ways, such as in fluidity of role definitions and a lack of long-term competitive advantage – generally agile companies will pursue a program of short-term competitive advantages, which are then neutralised, before moving onto the next. The general opposite of agile organisations are bureaucratic organisations with multiple channels of command that are slow to react, however in small and medium businesses it is often owners / managers that know there is something changing in their market but don’t want to change themselves, they hope that the change will stop and things will return, decisions are often thought about for too long and procrastination can be one of the key reasons businesses don’t move quickly.
- #5 In order to be an agile business especially as a small and medium business you need to be ready. Considerations must be how quickly can my company act.? What is there that could stop you from acting quickly.? High Overheads, Slow Suppliers, Existing Customer agreements, In-flexible Team Members, Long Term Contracts, Premises.? All these could be burdening a business down. More so they could be burdening the owner / key stake holders down focusing only on the hamsters wheel rather than giving them the opportunity to look out of the box.
- #6 How do businesses stay agile They may seem obvious, but do we really all have regular meetings and put the time aside Do we listen to feedback whether that be from employees or customers And probably most importantly what is happening in your marketplace, where are the competition moving or changing.
- #7 Probably the easiest question is the first one but of course the questions and answers that count are those that that will underpin any decisions Then there are further questions to ask yourself – could you outsource some or all of the work What are the differences it will make to the all important profit And lastly if I do nothing where does that leave the company
- #8 So that leaves you with three choices and as my dear old Dad used to say to me don’t keep procrastinating and make a descision
- #9 These points will appear on screen (in a smarter fashion other than a list), as presenter talks as the presenter goes through the screen they will discuss with people who already outsources some of these. The presenter should go through and highlight the areas where companies are supporting the event so e.g. Payroll, Taxes will probably be commonly outsourced to book keepers and accountants so it should start the discussion off on a positive note as people will see these as something that they do and can relate to. Under HR I will discuss not only HR companies but also mention that lots of HR can be outsourced through organisations like FSB, Chamber of Commerce etc as part of the membership. IT Support, how do we manage the changes in IT now and keep on top of it. We also understand that we cant employ our own IT people for a few hours a week and only when things go wrong. Marketing and how to get the best return.? On investment, we understand our businesses and what products and services we sell, however how should we get the business USP’s and key messages across to potential customers. Most businesses will put their hands up to say that they want new business, but not all will understand how to go and get it and where best to spend the budget. Agency workers, for example Xmas, large orders, the summer, do you have a list of people in your business that can help you with fluctuations in business. We all understand that business does not come in in a steady stream and that sometimes we are busy and other times looking for work, in order to manage these fluctuations we could consider forming a relationship with a company to supply agency workers as and when we need. Simple tasks that fluctuate, this could be many things but one of the bet examples of this could be the phone ringing, phone calls can be like buses, do we need to employ as many people as we the most calls we receive at one time or is there a better alternative.
- #10 Here the presenter will talk about the NO go areas for outsourcing.? This is a general slide designed to make the people think about what really needs to be under there control. Core competences, presenter to refer to core or key roles in the business, e.g. a business that runs a garden centre may get an agency worker in to help on the tills in the spring and summer but would they outsource the main role of the grower. A dermal filler company which plumps up lips and even’s out those wrinkles we all have, may outsource their calls to someone to answer and take diary bookings, but they would not outsource the work itself Problems, if you have a problem and you don’t know how to resolve it you may ask for advice and get support, but just outsourcing work which causes you problems probably wont take away the problem and could come back and bite you. Serious HR..? Yes again here you can get advice but serious HR definitely needs your involvement, at the end of the day, it is your company and decisions made wrongly here or without your knowledge could cost you dearly so again its advice and support you can get but not really outsource. Managers – if you need managers, maybe they are not the best to outsource, you really need key personnel in your business which understand the way the business is going so they can watch over your business and what is happening. We all believe as business leaders that we understand and know our businesses best, likewise key positions in management learn from us over time and reflect our goals and ambitions, so consider this carefully. And of course lastly if you need to outsource a role or task and it costs you more to outsource than employing someone yourself, this again needs to be considered carefully, if it is just short term maybe, long term probably not.
- #11 Presenter to run through the questions on the slide as they come up and give some examples. Position the fact that they must look at what they want to achieve and ask the questions
- #22 Recent REC research found that fewer microbusinesses plan to hire permanent staff over the next quarter and will instead be looking to hire temps. Almost 70% of the UK’s largest employers plan to increase agency worker headcount over the next quarter (50% higher than the year before). This just highlights the shift to being more agile and dynamic.
- #23 We manage the whole recruitment process on your behalf; advertising the role, promoting to our extensive database of candidates, collating CVs, drawing up a shortlist of candidates and pre-interview screening. We undertake all negotiations for salary too. This releases your resources to focus on your business, saving you time. Plus, we do all this for free and only charge you a percentage of the salary if our candidate is successful.
- #24 Cost to the business owner per month: £190+ VAT? 17 hours a month extra chargeable hours available which earns business AT LEAST £800 per month
- #25 Previously employed full time staff all year round, but business levels fluctuated often meaning they had to let staff go with the additional costs of rehiring during the busy periods and the time associated. They also had year round costs of salary / NI / pension / sick pay The business saved £8,000 per annum on their wage bill AND Were able to pitch for more business with the guarantee the workforce they needed would be in place as and when required
- #26 Supertemps would be responsible for all employer's NI contributions, tax liabilities, sick pay, holiday pay, stakeholder pensions, working families tax credit and their related administration costs. Meanwhile you, have the convenience of an extra pair of hands, while needed, with no obligation to carry on these costs unnecessarily. We would invoice on a weekly basis based on the hours worked.