Shifting Perspective to Increase Profit

Shifting Perspective to Increase Profit

Business, when broken down to its most basic form, is simple. An object is purchased at one rate before being sold at a higher rate to make a profit. But the reality of doing business is far from such simplicity. There are taxes, staff to consider, competition, marketing, reputational management and much more. The biggest cost for most businesses is, without a shadow of a doubt, staff. Salaries and benefits, not forgetting the training and recruiting, for your staff, eat into profit margins faster than an out-of-control wildfire consumes dry bush. However, unlike that wildfire, which may lead to damaged property, that can be offset with a claim from your insurer, the high costs associated with staff, on the other hand, do not have such benefit. Or so we thought…

More and more businesses are finding novel ways to overcome the tedious processes associated with staff. From automated payroll systems to recruitment applications, people are looking for easy solutions to complicated problems. Gone are the days when potential employees would stand and queue for hours to hand in paper resumes or wait for extended periods to receive their pay in brown envelopes. Nowadays, employees need not even travel across the country to meet with senior executives or extended teams. And with this new way of conducting business, newer problems arise.

The need for tech-savvy staff to monitor and ensure the smooth running of these applications adds a new cost to the business model, excluding the cost of the software and hardware installations. The new project management tools which assist with workflow, at least in the long run, require operational training, and on top of all of that, email exchanges have increased drastically with an average of 2.4 billion emails being sent every second. Yes, you read that right! Every second of every day, as reported by Tech Jury, here.

To manage all of this, let alone conduct the ‘simpler’ parts of business requires an army of sorts. As quoted timeously, in varying contexts, the saying, ‘No man is an island,’ holds true for businesses now more than ever. Out-of-the-box solutions are needed to combat out-of-the-box problems, and a shift in perspective has shown success, first in the pre-pandemic era, and now ever more as COVID-19 has again moved the goalposts, redrawn the scoring line and rewritten the rules of the game.

Outsourcing staff is quickly becoming the go-to solution for businesses that want to operate at full capacity with the ability to upscale quickly and efficiently.

The benefits of outsourcing staff include, but are not limited to, the following:

  • No training required,
  • No benefits to allocate,
  • No travel considerations,
  • Easily accessible, and
  • Cost-effective

This is just to name a few, as dependent with the needs of a business, so too are the capabilities of the outsourced staff, if correctly sourced.

Training takes time and effort and with a generation of job-hoppers, as stated by HR News businesses are less inclined to spend a fortune on training staff for administrational roles, social media management, and project management amongst others. Viewed as entry-to-mid level jobs, businesses expect their new hires to be able to adapt to new technologies and processes even before walking through the door. This expectation has led to severe consequences where individuals have now demanded better work/life balances over better pay. Businesses were forced to seek professional help from outsourced arenas.

To compound the cost of better work/life balances, benefits are becoming a bigger ask as newer generations see the struggles of older generations now living off their pension funds. The request for retirement annuities, medical aid, and allowances for various reasons have hit business staff budgets harder than salary payments. Outsourcing staffing needs has reduced these costs exponentially as businesses now pay for the service and not the person.

Lateness in the workplace costs the UK economy close to £9 billion a year, according to Natural HR. With remote working now in full effect, businesses are acknowledging the work-from-home shift, and this is a reason for outsourced considerations. No longer do businesses have an obligation to shell out for fuel allowances or plane tickets – meetings can occur across the globe with the help of an internet connection. Every saved penny helps.

Accessibility becomes favoured as people rely more on their mobile devices – instant connectivity is a given and, to an extent, a demand. Reports no longer take weeks to prepare, accountability is easily tracked, and outputs are measured automatically. Outsourced individuals are often part of allocated teams, and no single person is without support and thus peace of mind is ensured for these businesses who choose to reach out for services.

The low cost of hiring an outsourced team, as opposed to a single in-person hire, is the main motivation for most businesses who switch to this new-age approach.

Businesses have found that the only roadblock in obtaining an outsourced team is finding a reputable service provider that delivers as promised.

AVirtual UK has highlighted the reasons why a trusted organisation can improve your business, and at the same time, reduce your staff spend. With the quality assurances offered by the company, businesses can have the best of both worlds, improving productivity and profits. All it takes is a little shift in perspective.

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