When to Outsource

May 21, 2019 | By: Nicole Lloyd
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Property managers are increasingly interested in outsourcing certain O+M roles. It’s important, however, to consider the advantages and disadvantages of outsourcing. The following provides an overview of the benefits and drawbacks of outsourcing so you can decide if it’s right for your building:

Benefits:

  • Save money. In-house staff requires providing wages as well as benefits such as pension and vacation, risk assumed from directly employing staff and added insurance premiums like workers comp. When you outsource, the contractor absorbs these costs, reducing your risk.
  • Less personnel management. With outsourcing, if any personnel grievances or disciplinary issues come up, it’s the responsibility of the outsourced contractor to solve the issue rather than the property manager.
  • Not required to provide training, tools, or equipment. Outsourced contractors provide staff who are trained in the use of modern tools and equipment. Thus training and tools do not need to be provided in-house which saves time and money.

Disadvantages:

  • Less control. If you hire an outsourced company, you will no longer have the ability to directly manage the workforce in your building. There may sometimes be differences in the approaches and philosophies between you and the contractor which can lead to challenges.
  • Higher staff turnover. Employees with an outsourced contractor do not tend to have as much allegiance to the property. In-house employees tend to serve more years at one facility.
  • Lowered response time. With in-house employees, any building issues can be addressed more quickly than with outsource contracted employees.

Finding the Right Staffing Approach for Your Building

Ultimately, it’s up to you determine the right way to staff your building. But by using staffing ratios and determining whether outsourcing fits your needs, you can be sure that your property is well-staffed and running efficiently.

Source:

https://www.marejournal.com/single-post/2016/03/01/Commercial-property-maintenance-Outsource-or-perform-inhouse