Staff Outsourcing Versus In-House Direct Hiring

The most important criterion for business leaders when hiring should be the cost, expertise and flexibility when making important business decisions pertaining to hire using outsourcing vs. in-house recruitment.

The most important criterion for business leaders when hiring should be the cost, expertise and flexibility when making important business decisions pertaining to hire using outsourcing vs. in-house recruitment.

All companies’ main decision is based around hiring the best qualified employees at cheapest price when it comes to getting work done to allow business to thrive. Businesses often find themselves into hiring specialists for ad-hoc work or whether you want to build a full-time team for specific roles or business expansion. Whether building a in house team especially for a short-term project makes sense or hiring an outsourced employee makes more sense has to be debated. These decisions carry a huge impact on your quality of work, costs and more importantly finding the right person to get the job done.

Startups Often Resist using Staff Outsourcing Services in Thailand, and many Startups fear costs and sifting through the freelancer pool without direction. Or they’re eager to build their core team and culture with full-time employees and this has proven to slow down or make many (90% of failed Start Up in Thailand in 2020) start ups fail because of hiring or costs decisions.

So, the decision to hire in house or using Staff Outsourcing Services need to be thought out carefully and with years of assisting both large corporations, SME and Starts ups in Thailand since 2008, Smart Search has researched a few pointers which will help you to make a smarter business decision to when to hire people or using Staff Outsourcing in Thailand with following main points for businesses to consider.

1. Knowledge Gap

Advantages

Early-stage startups often “don’t know what they don’t know,” because of resource and financial constraints and contractors can help expose these knowledge gaps. Many Founders of Starts ups in Thailand often feel they missed out on many opportunities to build their business more effectively hiring experts on a Contractor or Staff Outsourcing Agreement. Many success cases can be found when business hire an expert on a Staff Outsourcing Agreement to find gaps on knowledge and help businesses thrive.

Disadvantages

One disadvantage when hiring a Contractor on a Staff Outsourcing Agreement that is unlikely the Contractors you hire are going to be experts in their field- if you find the right one. It's a lot like hiring an executive to help build part of your company. Most Experts in their fields are often not attracted to contractual work as like most Thai Employees work stability is one of their main concerns when considering new work opportunities.

2. Compare Costs

Advantages

Hiring a contractor means lower fixed costs and getting the work done without having to pay fixed monthly expenses, providing companies benefits or having to pay significant severance liabilities to full time employees when making redundancies or letting an employee go. Obviously, contractors are a benefit in not having to commit yourself to long-term resources and gives companies a much greater flexibility to making changes to their workforces.

Hiring Contractors generally means companies do not need pay the monthly fixed salary, medical and health benefits which actually turns out huge cost factors for companies especially startups.

Disadvantages

At times the contractual services on Staff Outsourcing Agreements for some specific (high demand) job can turn out to be expensive, especially when there are few qualified people in the market, and contractors in these high demand roles often expect higher salaries to compensate for the short term or lack of benefits that in-house employees often receive.

3. Retention and Training

Advantages

Retaining employees can be a real challenge for many companies especially in Thailand which has experienced a very low Unemployment Rate for the past 15 years. The lack of notice requirement in Thailand for Employees often can result in very sudden resignations that leave many employers in Thailand in a very challenge situation. Hiring a new employee, finding the right person and training them to be proficient are time consuming, tedious to some and expensive for all companies.

Hiring a Contractor through a Staff Outsourcing Companies like Smart Search Recruitment and various is a quick, timesaving and relatively easier than hiring and training permanent employees. Using a Staff Outsourcing Companies also allows to tap into a much wider and diverse pool of potential employees.

Disadvantages

The purpose for which you are hiring plays a significant role in making hiring decisions for most. If you are hiring for scaling up, contractors can be at times the right people for such a job. Another reason startups and some companies tend not to hire Contractors is because they fear they are hiring the wrong person. Part of that can come from people who have been at big companies exclusively and have seen Contractors act as mere staff augmentation and filling no crucial business roles and much more effective for mid- to large-scale businesses that are growing faster than they can keep up with.

Conclusion

As a business you need to beware of what roles are crucial to your business and weigh various factors before deciding to hire in house or using a Staff Outsourcing company to work with. The most important criteria should be the cost, expertise and flexibility and these will help you make the decision of outsourcing vs. in-house staff and using an expert like Smart Search Recruitment can help every business with their hiring needs in Thailand.


Smart Search Recruitment is Bangkok's leading executive recruitment consultancy. We serve multinational and local companies, sourcing high-caliber candidates and placing them in mid and senior-level roles. For recruitment service inquiries contact us. If you are looking for a new job please drop your CV. We are committed to meet our client’s needs by delivering an exceptional level of service. We have insightful HR resources updated everyday. Please keep in touch with us via our social media.

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