The Advantages of Outsource Staffing for Small Businesses

By Cam Velasco

CEO & Co-Founder
Published: Jan 30, 2024
In this blog, we discuss the challenges faced by small businesses in staff hiring and management. We also highlight the benefits of outsourcing staffing, including access to global talent, cost savings, and improved agility in recruitment, helping small businesses focus on their core objectives for growth and success.
A small business owner organizing packages with a clipboard, illustrating the efficient workflow enabled by outsource staffing.

Running a small business is extremely challenging when it comes to hiring and managing staff.

Outsourcing staffing is an excellent alternative for certain positions, as it can provide significant advantages such as cost savings and flexibility. These benefits are valuable for small business owners seeking to optimize operations and cut costs.

In this article we’ll dive into the top benefits of outsourced staffing for small businesses, including cost savings, access to specialized talent, increased scalability, and an enhanced focus on core competencies.

Let’s begin!

Introduction of Outsource Staffing For SMBs

Outsourced staffing provides significant advantages for small businesses looking to scale up their teams quickly and cost-effectively. As opposed to trying to hire in-house, outsourced staffing allows small businesses to tap into specialized global talent pools through an external company. This solves many of the hiring challenges small companies face.

Defining Outsourced Staffing

Outsourced staffing refers to partnering with a staffing agency to provide personnel, rather than trying to directly hire employees yourself. Key benefits of this approach include:

  • Access to Global Talent Pools: Staffing agencies have large networks for sourcing candidates with niche skills from around the world. This level of access is difficult for small companies to match on their own.
  • Speed and Agility: It can take months to find, vet, and hire candidates, slowing growth. Staffing agencies can provide pre-vetted candidates in days or weeks.
  • Cost Savings: Agencies leverage economies of scale to offer competitive rates. This is cheaper than hiring in-house, especially for short term or project-based needs.
  • Turnkey Solutions: Agencies handle sourcing, vetting, hiring, payroll and more. This eliminates recruitment burdens for small business owners.
The Challenges of Internal Hiring

Trying to hire in-house marketing talent and other specialized roles poses numerous challenges for small businesses including:

  • High competition in the job market makes attracting top candidates difficult.
  • Vetting and interviewing applicants is extremely time consuming.
  • Offering competitive compensation packages can be cost prohibitive.
  • There are risks around culture fit, skill level and retention.

Outsourced staffing mitigates these pitfalls by providing pre-vetted, specialized talent accustomed to working remotely. This empowers small businesses to punch above their weight.

Cost Savings of Outsource Staffing

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Outsourced staffing delivers significant cost savings compared to hiring locally, by leveraging talent pools in lower cost-of-living areas.

Reduced Salaries and Benefits

Salaries for outsourced staff can be 30-50% lower compared to local hires in high cost-of-living areas. These savings add up quickly when building out a team of multiple marketers, designers, developers, etc. Companies can get more value by paying less for similar quality talent.

No Recruiting/Onboarding Costs

Outsourced staffing companies handle the entire recruiting and onboarding process for clients. This saves small businesses the high costs associated with recruiting, interviewing, background checks, paperwork, and orientation of new hires. With outsourced staffing there are no extra HR expenses.

Access to Specialized Talent

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Outsourced staffing grants access to wider, more specialized talent pools across different countries and labor markets. This allows companies to build stronger marketing teams by leveraging global expertise.

Expanded Candidate Pool

Searching globally for marketing talent opens up a much wider pool of qualified candidates beyond just your local region. This diversity allows you to find professionals with very specific skillsets or unique industry experience that may not exist in your local labor market.

For example, you could find a digital marketer based in Latin America who specializes specifically in your industry and has 5+ years of proven experience driving growth for similar companies. Or you may discover a graphic designer based in Asia who has a style and creative vision that perfectly matches your brand image.

The breadth of global talent provides flexibility to assemble a custom-fit marketing team to match your precise needs.

Multi-Disciplinary Teams

Building an offshore marketing team also enables forming well-rounded, multi-disciplinary squads under one roof. Since you can choose from various specialists across different countries, you can create a single team with experts spanning:

  • SEO/SEM
  • Social media marketing
  • Content creation
  • Graphic design
  • Videography
  • Data analytics
  • Media buying
  • Email marketing

Having these diverse marketing skills together provides flexibility to develop integrated strategies across channels and unified messaging. It also facilitates collaboration on multi-channel campaigns.

This streamlined approach can increase productivity and innovation compared to working with separate agencies or freelancers. The offshore team essentially serves as an extension of your in-house marketing staff.

Increased Scalability

Outsourced staffing provides significant scalability advantages for small businesses. With an outsourced talent provider like Floowi, you can easily scale your marketing team up or down to match workloads and budgets.

Flexible Team Size

One major benefit is the ability to flexibly add or remove team members based on your needs. For example, if you have an upcoming product launch or seasonal busy period, you may need to rapidly onboard more graphic designers, social media managers, or PPC specialists. With Floowi’s global talent network, you can quickly scale up. Then after the campaign, easily reduce headcount without painful hiring and firing. This level of flexibility is extremely valuable for organizations with fluctuating workloads.

Reduced Hiring/Firing Costs

Additionally, outsourcing eliminates most HR burdens and costs associated with hiring, managing and firing in-house employees. Floowi handles sourcing, screening, hiring, payroll, benefits, terminations, and more. You simply pay a monthly fee based on team size and skills. This saves countless hours of recruiters’ time and reduces HR-related risks for small business owners. With outsourced staffing, you get all the benefits of a full marketing team without the typical hiring and firing hassles.

In summary, outsourced talent enables easy scalability, flexibility, and major reductions in HR overhead. For high-growth companies or those with seasonal peaks, this staffing model is vastly superior to traditional in-house hiring. Floowi’s global talent network makes it simple to right-size your team for any workload.

Enhanced Focus

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Relying on an outsourced staffing provider to handle recruitment and management tasks allows business owners to focus more on core business objectives.

Outsource Non-Core Functions

Outsourcing talent acquisition frees up time for marketing leaders to devote to more strategic initiatives. Rather than sorting through piles of applications and conducting numerous interviews, they can rely on a staffing partner’s proven recruitment process to source qualified candidates that match their needs.

This allows marketing executives to concentrate their efforts on vital responsibilities like:

  • Developing data-driven campaign strategies
  • Optimizing conversion funnels
  • Expanding partnerships and collaborations
  • Identifying new market opportunities
  • Creating targeted content and assets
Ongoing Management Support

Partnering with an outsourced staffing provider also offloads the day-to-day personnel management that comes with building an in-house team. The staffing company handles key functions like:

  • Screening and background checks
  • Visa and immigration paperwork
  • Payroll and benefits administration
  • Performance evaluations
  • HR compliance and record keeping

This ongoing support enables marketing leaders to focus on guiding projects and initiatives rather than getting bogged down in HR tasks. And having an external party manage team members can make it easier to objectively address any performance issues that arise.

Relying on a specialized staffing provider to own recruitment and management not only saves clients time, but also reduces risk thanks to built-in compliance procedures and experienced account management. This gives marketing executives confidence that the expansion of their teams is in good hands.

Conclusion

In summary, outsourced staffing delivers major advantages for small businesses looking to scale up marketing teams quickly. Key benefits include dramatic cost savings, easy access to specialized talent, increased scalability, and greater focus on core objectives.

Main Takeaways

The core values outsourced staffing offers are:

  • Reduced costs: Outsourced staffing allows small businesses to access top marketing talent at a fraction of the cost of local hires. By leveraging offshore talent pools, companies save 50-70% on talent costs.
  • Specialized talent access: Small businesses gain access to specialized marketing skills like PPC, SEO, social media marketing, graphic design, and more through outsourced staffing partners. This talent would be difficult and expensive to hire locally.
  • Flexible scaling: Marketing teams can scale up or down quickly based on workload and campaigns. This provides flexibility for growing companies.
  • Less hiring/management burdens: Outsourced staffing partners handle the hiring, management, and HR burdens. This allows small business owners to focus on core objectives.

 

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Cam Velasco

CEO & Co-Founder

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