5 Main Benefits of Employing Subcontractors, and how to Manage Them Effectively
- 4 min reading
Running a business that is carrying out fieldwork in a highly competitive market requires constant attention when it comes to operating costs, flexibility in development, and decreasing time to market. Achieving them all at the same time may seem quite challenging, if not impossible.
But employing subcontractors or other third-party workers might be the answer.
Benefits of employing subcontractors
From gaining flexibility to optimizing costs and resources, introducing subcontractors or third-party organizations can enable FSM companies to decrease the costs of field operations, raise revenue by upgrading the number of technicians, and quickly building a presence in new markets.
What are the key benefits of employing subcontractors in FSM?
Lower cost of staff management
Introducing external workers involves fewer costs than employing permanent staff, from searching for the right people, through the hiring process and legal obligations, all the way to day-to-day costs involved in staff management. Working with subcontractors or third-party teams is much more cost-efficient and offers the benefit of greater cost flexibility, as teams can expand or be reduced easily.
Highly specialized technicians ready to work make for shorter time to market
Using a third-party team also means quicker time to market. Ready to work and highly specialized staff need no additional training or on-boarding. This drastically decreases the time needed to introduce new workers, and is especially beneficial in cases where time matters, such as when your business is growing quickly and you cannot wait for the permanent hires, or when your company works from one project to another, where different specialized teams are needed.
You get more specialized knowledge in much less time.
No long-term commitment
Employing third-party workers gives your company more flexibility than introducing permanent employees. Instead of hiring workers on long-term contracts, you can employ contractors that will help you take care of different short-term projects, after which you can continue your journey together or part ways without any negative consequences.
With full-time permanent employees, ending cooperation can be much more complicated and entail significant costs (such as severance pay).
Limited capital investments
Apart from staff management, subcontractors and third-party teams bring another cost optimization to your FSM business. While introducing new permanent employees, you need to take care of their training (which is costly and time-consuming), and make sure they have the right equipment to perform the tasks. With subcontractors or other external workers, there’s no need to worry about making such investments – as the third-party staff usually have what it takes to get the job done.
The ability to expand or reduce the team freely
In this economy, it’s sometimes hard to predict where the business will be in a few months. Cooperation with subcontractors or third-party workers allows you to stay flexible and expand your team when the business grows, or reduce it during the slower months. If new business comes your way, and the project involves introducing new specialized staff, you can simply employ new skilled subcontractors for the duration.
Manage your external subcontractor team effectively
Introducing subcontractors can be very beneficial to your FSM business. It’s easy, it’s often cost effective, and it’s less time-consuming. If this sounds appealing to you, you’ll probably want to know how to make the external teams work even better. How to control the workers? In what ways can you motivate the staff? Find the answers to these and more questions in our comprehensive guidebook about subcontractor management and how to do it effectively.