Total Office _ FAQ – Employee vs. Outsourcing

FAQ – Employee vs. Outsourcing

COST OF HIRING A NEW EMPLOYEE

1. How much does a new employee really cost?

A: Monetary costs

Space & Furniture
Hardware & Software
Training & Continuing Education
Benefits
Replacement (during scheduled and unscheduled leave)

B: Emotional and Motivational Costs
David J. Drucker in 'The Best-Kept Secret in Financial Planning,' says, "If you ignore [an] employee's personal growth needs in conjunction with the other benefits you provide him or her, you will lose that person. If you indulge personal growth needs, you are involved in a personal relationship with that person. It is in attempting to navigate this dilemma that employers lose employees or, perhaps worse from an efficiency standpoint, get involved in helping them solve serious problems in their lives, like drug addition, divorce, or chronic tardiness."

2. What will happen if this person gets a better offer or just leaves your company?
Then all that money, time, and emotional energy has been wasted and you will need to start all over again.

OUTSOURCING BACK OFFICE WORK

1. Save money on office space, furniture, hardware, software, training, benefits, and replacement costs. All of these must be afforded by the business that you are outsourcing your work to.

2. There is no personal attention required. There is no emotion attachment. You are dealing with another "business".

3. Their need for success is their motivation. Because this business needs to survive just like your business needs to survive, they must uphold their reputation. Competition and the need for the business to succeed creates motivation. When they help you succeed, they succeed. It's a win win situation.

David Drucker along with Joel Bruckenstein are co-authors of the books, Virtual Office Tools for a High Margin Practice and Tools and Techniques of Practice Management. They are also publishers of the monthly Technology Tools for Today: The Newsletter and host the Financial industry's leading conference on technology, T3: the Conference, as it directly relates to practice management and building a profitable business. Information on these resources can be found at:

www.technologytoolsfortoday.com