Do you ever get that feeling of deja vu when you’re in a meeting and talking about a project that needs kicking off? It could be because you heard it in last month’s meeting (and the month before that) and no one has yet managed to kick it off.
A lot of the time, projects get shelved because of human resource shortages. Other times, research needs to be done to establish the worth of the task before it gets going.
The immediate solution to jump to is to hire more staff to take on the project. However, this isn’t always the answer. Let’s say that you hire someone in and your project gets done – but then the company’s workload decreases and suddenly, your new employee is surplus to requirements and you’ve wasted money on-boarding them.
There are a lot of other costs associated with taking on new staff and these can be avoided through outsourcing your projects or activities. Here’s a rough break down of how much it costs to bring on one new member of staff:
Salary – £27,600 (reported average)
Recruitment costs – around £5,000. Based on 20-30% recruitment fee of average salary.
Bonuses – £1,656 (average 5.5 – 6.5% of net pay according to government statistics)
National Insurance – £4,037 (13.8% of the total pay)
Pension – Minimum £276 (rising to £828 by April 2019)
Training – The average UK company spends £1,000 + per employee.
Office space and equipment – circa £4,750
HR costs – £7,000
The answer could be to outsource a project. At Johnston Horsburgh, we help businesses tackle those niggling projects which seem to be perennially on the agenda of the monthly meeting. For a fraction of the price of hiring new staff, we can look into the feasibility and worth of a project then shape and execute the idea.
So, if you’ve been putting off starting that project you’ve been meaning to get around to for months, have a think about outsourcing it. You could end up saving yourself a heap of time and money.