By Preston Sumner
By Joel S. Smith, CPA
Of all the painful lessons that business owners learned during the recession, the hardest one may have been that of laying off staff—many were longtime loyal employees who’d helped them build and grow their companies.
As the economy began to improve and it was time to rehire, many business owners were rethinking their staffing practices, turning to outsourcing as a way to meet personnel needs. Outsourcing doesn’t completely replace full-time employees (FTEs), but it’s become an efficient and cost-effective way to staff for temporary workers or for certain key roles.
Outsourcing makes sense for some very good reasons
1. A cyclical economy. Regardless of industry, ours is a cyclical economy; there are always going to be dips when staff layoffs may become necessary. Severing a relationship becomes much easier when there isn’t the long-term investment that accompanies full-time employment.