Why You Should Consider Using an Outside Resource During an Economic Recession
Back when I was a senior in college, I thought I’d graduate with the world as my oyster. But then I graduated, and the economy imploded.
That’s right, folks: I was one of the many “lucky” Millennials who entered the workforce just as the Great Recession reared its ugly head.
That’s why the recent news about a potential upcoming recession is a bit worrying, to say the least.
Per a Yahoo news article issued last week, 74% of U.S. business economists predict that a recession may be coming because of President Trump’s economic policies (read: trade wars).
Whether they’re right has yet to be determined, but the factor of the matter is, recessions do happen. As the Great Recession and previous recessions taught us, we need to prepare for our next economic downswing.
A surprising way to do so? Workforce augmentation, also known as outsourcing.
Here are three reasons to consider using an outside resource for your non-core functions during a recession based on a June 2019 Forbes article by Jennifer Barnes.
1) You can focus your talents, efforts, and resources on what has the greatest effect on your revenue stream.
During a recession, most companies try to (or have to) operate with a lean workforce.
So, why not divert money spent on non-core functions – i.e., the ones that have the lowest value to your business – to your core functions only – i.e., the functions that contribute the most to your revenue?
Workforce Augmentation, Core Functions & Non-Core Functions
But first, I need to quickly address the emphasis on core vs. non-core functions.
When it comes to the dreaded O word, opinions vary. Many people balk at the thought of outsourcing. Does that mean job replacement? Layoffs?
Not when the focus is on non-core functions. When you work with an outside group for your non-core functions, you keep your current workforce and can even bring on new employees.
The key difference is your workforce only focuses on what they excel in and what contributes the most to your bottom line.
Wise Financial Spend & Focus on Ultimate Business Goal
Outsourcing your non-core functions ensures that you spend your money on what truly makes your business the most profitable.
For example, look at your data entry activities, payroll services, HR duties, bookkeeping functions, or any sales activities found in the demand side of the sales continuum. Are any of them non-core functions?
If so, working with an outside company who specializes in these functions will serve you better in the long run. You’ll focus on what you do best and only heavily invest in internal resources that will contribute directly to your revenue stream.
This will eliminate financial waste and ensure you have an intentional and well-equipped workforce who all influence the end results.
2) You’ll save money.
It goes without saying that outsourcing your non-core functions can save your company money.
Instead of paying three full-time employees to do non-core work, you can use an outside resource with expertise in those non-core functions all at a fraction of the cost.
Plus, you don’t have to pay outside firms benefits, which brings you even more savings.
3) You can offer better benefits to your employees in a time when they need them the most.
Outsourcing non-core functions gives you the ability to maintain the benefits you have for your current employees.
This is because of the savings you can reap by working with an outside company for your non-core functions (see #2).
As a result, you can ensure that you don’t have to cut any benefits at a time when they’re the most needed.
Regardless of when the next economic recession arrives, you need to prepare for its effects and come up with ways to weather the storm while maximizing your internal resources and focusing on your revenue stream.
Working with an outside group can help with this. You’ll invest in what you do best, save money, partner with experts in non-core activities, and have the ability to offer your employees benefits during a crucial economic time.