Outsourcing has become essential for a rapidly growing number of businesses across the country, and companies of all sizes now find themselves dependent on outside labor. While some businesses make the mistake of associating this phenomenon only with IT and other tech-related fields, the reality is that the outsourcing revolution isn’t limited to a particular industry. This fascinating trend is relevant for all types of executives, and it’s especially pertinent for liberated CEOs who strive for financial security and personal freedom.
Hiring Specialists: Where to Begin
Some CEOs are skeptical of outsourcing labor and are concerned that the result will be an unaccountable labor force that won’t be as productive as full-time employees. The truth of the matter is that by doing your due diligence while recruiting freelancers, you’ll have the benefit of hiring reliable specialists while shedding the costs of keeping full-time employees on staff. It’s this mutually beneficial tradeoff that has compelled many entrepreneurs to become staunch advocates of hiring outside labor, such as the prominent investor Timothy Ferris, who has authored best-selling books on the subject.
Many entrepreneurs are on board when it comes to hiring outsourced workers, but they are unsure where to begin. Other CEOs feel comfortable bringing in outside talent when it comes to marketing, accounting and IT-related work, preferring to limit their full-time employees to those who are absolutely essential to day-to-day operations. It’s important not to overextend when it comes to outsourcing, or you may find yourself on a slippery slope where you ultimately lose control of your company. To become a liberated CEO, you’ll need to take advantage of the opportunities presented by outsourced labor while simultaneously avoiding the common pitfalls.
Managing Costs and Improving Customer Relationships
Hiring full-time employees is still the conventional and intuitive approach for most CEOs. Full-time employees can certainly improve the productivity of your office, but it’s also important to be mindful of the hidden costs involved. For example, if you tally the time and resources spent purely on recruitment, you may find that your business has spent several thousand dollars even before the employee’s first day. Once you begin to factor into the equation health care, benefits and contributions to their retirement fund, your dependency on full-time staff may seem like a major roadblock to becoming a liberated CEO.
It’s also helpful to consider how hiring outsourced labor will impact your ability to control your organization’s key customer relationships. While some CEOs feel that they have a greater ability to manage their client interactions with an in-house staff, it’s equally essential to appreciate the value of outside labor in improving customer loyalty and satisfaction. By creating a blend of insourced and outsourced talent, you’ll be able to find the sweet spot between cost-cutting measures and upholding customer satisfaction.
Competing on Knowledge and Managing Your Team
One of the key benefits of outsourcing labor to specialists is that it will allow your organization to stay ahead of the curve when it comes to familiarity with the latest trends. You’ll be able to fill technical and strategic gaps by working with experts who will maximize your team’s productivity by implementing strategies that go beyond the capabilities of your in-house staff. Whether it’s short-term work or a long-term relationship, having an additional expert at your disposal can make all of the difference to your company.
It’s critical to keep in mind that liberation won’t come about on its own and that becoming a liberated CEO requires you to take the accountability of your freelancers seriously. Micromanagement would be a recipe for disaster, but it’s also crucial that you integrate outsourced labor into your office communications to increase your overall productivity and enable you to budget for projects more accurately. Try to find a middle ground where you have the peace of mind in knowing that your outsourced labor is working reliably without spending excessive resources managing their performance.