Not all construction jobs are the same. That often means the equipment and types of employee skills needed may differ extensively between your current and future project. Therefore, depending on the type of construction your company does, some skill sets may not be used all the time.
The same goes for equipment. While it makes sense to invest in versatile machines such as an excavator for sale Melbourne companies rely on, some machines aren’t used often.
In these instances, it makes more economic sense to hire machines and subcontract employees as needed.
Top Reasons to Consider Outsourcing
Simply put, outsourcing refers to the practice of subcontracting employees with a special skill set only when they’re needed rather than having them on a permanent payroll. Both small and large companies often opt to outsource because of the many benefits. Let’s take a look at a few of the more common reasons why companies prefer to go this route.
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Overhead Costs are Reduced
The specialised skill sets that certain occupations involve can be very difficult to afford, especially if this requires office space and employee benefits. Outsourcing allows companies to pay contractor rates minus benefits and office space. Rather than pay the costs involved in maintaining an office space with benefits, companies only need to pay a base fee.
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Provides Access to Specialised Skills
As we’ve already mentioned, not all construction jobs require the same employees. While certain job functions are standard on most sites, there are occasions where jobs require specialised skills.
When a job requires a skill set or area of expertise that isn’t standard, employers can outsource the task to employees with the right expertise. This benefits the company because you get access to expertise without having to pay training or licensing costs. Furthermore, when you pick the right outsourced workers, they will also be up to date with using the latest technologies and equipment.
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Creates Budget for Internal Staff Development
In many instances, companies that have permanent staff don’t have the budget or opportunity to develop or train their staff. By outsourcing some of the job functions, the money saved can easily facilitate more internal staff development.
Doing this not only creates a stronger, more skilled workforce but also reduces turnover rates as employees feel they have something to work toward.
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Reduce Recruitment Costs
Every time a company employs new staff or gets new equipment, there are costs allocated to onboarding and training. For one thing, in instances where you may have invested in machinery such as a 3-tonne excavator for sale, you will be required to train an operator to use it.
This cost needs to be factored into your total recruitment and project costs. Depending on the type of machine, certain licenses may need to be updated or the operator retested annually. This of course adds to your budget if the employee is permanently employed by your company. With outsourcing, these costs aren’t yours to worry about.
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Easy to Find Skilled Casual Labourers
Depending on the scale of the project, you may not need specialised staff but rather more of what you already have. The logical step here is to opt for casual day or week labourers.
By outsourcing, you don’t have to waste time finding people—trust recruitment companies to get you the right people. These companies have many options, since people are always looking for work.
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Outsourced Employees are Already Checked Out
Construction jobs are very time sensitive. That means you may not always have time to search for a temporary employee and do the necessary background checks. By using a subcontractor, you’re assured that the screening process has already been completed.
This saves both time and money and positions are filled quicker. It also means that issues such as safety training have already been taken care of and employees can start working as soon as they arrive on site.
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Frees Up Management Time
When a project or site manager doesn’t have to spend hours searching for and screening potential employees or arranging training and safety induction, they have more time to focus on the project. This in turn ensures that more work gets done on time and attention can be devoted to areas that need it.
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Decreased Liability on Injury Claims
No matter how safe a job site is, or how well the staff are trained, accidents happen. When you employ your own staff, your liability instantly increases. However, when you opt to rather rely on subcontractors, most outsourcing companies carry the liability of the employee. This means your construction company will be protected from injury claims. Penalties and costs related to accidents or injury will also be covered by them.
Since this clause varies between companies, be sure to confirm details before the workers starts the first tasks on site.
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Final Thought
Outsourcing is one of the top ways to ensure that potential employees are vetted, skilled and ready for the type of project you’re working on. Furthermore, companies that specialise in outsourcing will ensure that employees are trained in all safety and relevant licensing requirements.
Opting to rely on outsourcing will ensure that you get the job done right and on time. Since time is money in the construction industry, why not use the quicker options that are available?