InTents June/July 2023 - 40

business | management
Can outsourcing reduce
operating expenses and
mitigate labor shortages?
By Jason Bader
was recently speaking with a group of
operations managers and they raised
the topic of outsourcing. Outsourcing
of services has always been something
that my clients have traditionally
shied away from. They often outsource
functions in the early years, but as they
grow, there is a tendency to bring things
in-house. Perhaps the perception is
that they will gain greater control
over the function, or they feel like they
can do it cheaper than what they are
currently paying for an outside service.
I am sure that there are many reasons
for the shift, but is it really prudent to
continue performing functions in-house
when other companies provide similar
services? Is this the best utilization of
our shrinking labor pool?
As every company owner knows, the
ability to find enough associates to keep
up with growth has been a challenge in
the last couple of years. Anyone looking
for entry-level associates is having to get
creative with their recruiting and paying
significantly more to attract candidates.
These candidates are not necessarily
better than our previous crop, but they
sure are more expensive. Furthermore,
the competition to attract talent has
created an " arms race " between local
employers. Associates begin to look
elsewhere for just $1 more per hour.
Another buck or two an hour to attract
new talent doesn't seem like much on
the surface. The problem is that this
bump in the starting wage creates a
ripple effect in the organization. Now
40 intents june-july 2023
I
you have to adjust your pay scale for
everyone in the firm just to keep them
from wandering to greener pastures.
This is where it gets expensive. Even
if we could afford a boost in payroll
expense, can we find enough people to
do all the tasks we currently perform
in the company? The cost of labor and
the instability of employment force us
to look at how much we can keep under
our own roof.
One of the conversations that sparked
this line of thought came from a client.
He had been feeling very overwhelmed
by the number of projects he wanted to
accomplish and having a difficult time
prioritizing these ideas. Furthermore, he
just didn't have the time to dedicate to
everything. Fortunately, he ran across a
book that changed his perspective: Who,
Not How: The Formula to Achieve Bigger
Goals Through Accelerating Teamwork by
Dan Sullivan and Dr. Benjamin Hardy. By
focusing on who was going to take on a
project or a detail of a project, rather than
how he was going to tackle it, my client
found a whole new methodology to move
his company forward. While this epiphany
focused on internal staff, the concept
could easily be translated to someone or
some entity outside the company.
In the discussion with my group,
we realized that many of us do a fair
bit of outsourcing and really take it
for granted. One of the first functions
discussed was freight negotiations. The
movement of product has always been
in the top three of operating expenses

InTents June/July 2023

Table of Contents for the Digital Edition of InTents June/July 2023

InTents June/July 2023 - Cover1
InTents June/July 2023 - Cover2
InTents June/July 2023 - 1
InTents June/July 2023 - 2
InTents June/July 2023 - 3
InTents June/July 2023 - 4
InTents June/July 2023 - 5
InTents June/July 2023 - 6
InTents June/July 2023 - 7
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InTents June/July 2023 - Cover3
InTents June/July 2023 - Cover4
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