Small Business HR

Human Resources: Engaging Others to Help in Growing your Home Business

Outsource for business growth
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Business owners encounter a period when they can no longer handle all their tasks associated with expanding and running their business and thus the need for added human resources. In this case, they explore the various options available in the market such as hiring new employees, outsourcing their businesses or even hiring sub-contractors. Whichever option they choose to add human resources in their businesses, there are both pros and cons.

Hiring New Employees

When people open new businesses or their businesses start to expand, they definitely look for help. Most business owners start by hiring contractors to do the huge work for them but later decide to hire employees.

Pros of hiring employees

Schedule control

The main advantage of hiring employees is that the employers are able to specify the work timetable of the workers they hire, which help to ensure that the employees are available to handle business tasks when employers need them done. Businesses that use independent contractor to handle their jobs have no control over their contractor’s schedule, which means that he or she may not be available to do urgent jobs.


When employers hire their own workers, they are able to train them using their own techniques, rather than depending on the training the employees already have. This allows them to tailor their workers’ training according to their specific practices and needs, which result to enhanced ability when carrying out business tasks.

Cons of hiring employees

Benefits and taxes

The main drawback of hiring employees is that employers have to pay part of their employees’ social security contribution as well as withholding state, federal and local taxes. This adds expenses to businesses and even hours to businesses work week as they compute these benefits and deductions. In addition, business owners may need to offer other benefits such as health insurance, access to retirement plan as well as paid time off so as to attract the best employees.


Outsourcing, also known as off-shoring, has its own pros and cons.

Pros of outsourcing

Expertise and swiftness

People outsource their tasks to vendors who are qualified and specialized in their field. In addition, the vendors have specialized technical expertise and equipment, which are often better than those at the outsourcing firm. This leads to not only faster completion of task, but also output of the highest quality possible.

Risk sharing

One of the key factors considered by business people when determining the outcome of their decisions is risk analysis. Outsourcing certain components of business process helps the firm to transfer certain responsibilities to another vendor. Due to their experience in these kinds of jobs, the outsourced vendors are able to plan businesses’ risk mitigation factor better.

Reduced recruitment and operation costs

One of the prime benefits of outsourcing business is that it eludes the need of hiring employees hence operation and recruitment costs are minimized to a great extent. In addition, businesses are able to save a lot of money as they are not required to invest in the latest software, infrastructure and technology as it’s handled by their outsourcing partners.

Cons of outsourcing

Hidden cost and lack of customer focus

Although outsourcing is quite cost effective, at time there can be hidden costs involved when contracts are being signed. This can be a serious threat to business people. In addition, outsourced vendors may be dealing with multiple firms at a time and thus lack complete focus on individual business needs.

Hiring Sub-contractors

Organizations may need additional resources to perform specific or specialized tasks. They may want to use the services of sub-contractors or contractors for these tasks and thus the need of weighing up the merits against the demerits of subcontractors.

Pros of sub-contractors

  • Businesses can hire them when they need flexibility
  • Businesses can use them for tasks that require specialist expertise
  • Permanent employees are able to concentrate on their core businesses
  • There is no PAYE or social security fund contributions for sub-contractors
  • Businesses are able to cover for an employee who may be on leave or sick

Cons of sub-contractors

  • They may cost more that daily rate of normal employees
  • When business rely on sub-contractors, they are not able to develop or acquire in- house skills
  • Employees may hate subcontractors being paid more than them for doing similar tasks

Whichever method businesses may choose for adding human resources, be it hiring employees, outsourcing or even hiring sub-contractors, they should ensure that the advantages outweigh the disadvantages in each case.