3 Reasons to Outsource Your Back Office

Person looking at documents in a filing cabinet.

Businesses often overlook the back office, but it provides a crucial support system for growth. The back office includes non-client-facing services—including administration and support personnel in departments such as accounting, IT, supply chain, HR, and internal communications—that drive almost 50% of a business’s operations. As the workload grows and your company expands, consider outsourcing certain positions. A stable, in-house office can support your company; an outsourced back office can help you grow and thrive. Here are three benefits your company can enjoy from outsourcing certain positions.

Reduce Operating Costs

Outsourcing can be an efficient way to streamline your business and reduce costs. Several business areas might benefit from outsourcing back-office operations, including IT, compliance, or payroll. Outsourcing services often have lower labor costs because of fewer overhead costs and employees. Hiring people in-house means paying salaries, equipment, software, training, office space, and more. Outsourcing eliminates these ongoing costs.

This type of cost-cutting could be especially attractive to a growing company whose workforce remains relatively stable but realizes outsourcing services will significantly boost its bottom line. For example, when you outsource your IT functions to a company specializing in this area, experts handle all your information technology needs. This frees up your time to focus on your core competencies without being bogged down with issues related to servers, data storage, software, hardware, and other challenges. This benefits different departments by freeing them up; they no longer need to worry about repairing a broken laptop or installing new software.

Improve Productivity

Core business functions such as payroll and accounting are essential but can also be time-consuming and repetitive. Employees who take hours out of their day to perform these tasks can’t be used for more productive things. Outsourcing specific jobs can also free up your employees’ time to concentrate on more critical aspects of their work, improving productivity. For example, you outsource administrative support. In that case, this can help other departments by freeing up your employees’ time to try new ideas without worrying about specific everyday office tasks.

When a company outsources payroll, employees get to spend less time doing it themselves, and they have more time to do other things. They can work on different parts of their jobs or even volunteer for something else entirely. A company can use its freed-up resources in many ways: expand into new markets, improve internal processes, or increase productivity. Employees may also be happier to focus on more critical parts of their jobs if they know that payroll is taken care of by someone else.

Leverage Quality Talent

Finding the right talent for your team can be challenging when you’re a growing business. Searching for new hires, interviewing candidates, and managing their onboarding process can take up valuable time. Fortunately, outsourcing your back-office functions can help you find quality talent. It can help with both scalability and flexibility as you grow by giving you access to a large pool of candidates who trusted recruiters have screened.

When you outsource your payroll, human resources, and accounting processes, you are tapping into an experienced team of professionals to take care of all the functions related to these aspects of your business. Expert teams of the outsourcing partner will take care of all these activities efficiently. For example, they’ll find the best candidates for each opening and get that candidate’s paperwork processed, so everything runs smoothly on their first day on the job.

When a company outsources its back-office functions, it can benefit in many ways. However, not all businesses realize that outsourcing provides a crucial support system for growth. Leveraging and partnering with the right back-office outsourcing provider can help you cut costs, increase productivity, and get quality talent.

About EG Workforce Solutions

We’ve been in this business for decades and have developed a deep network of professional connections. Whether they’re companies looking for talent, job seekers looking for work, or an up-and-coming store in need of some temporary help, we know the right people to bridge the gap between the hiring and the hired.

But what’s more, we get to know people. From employers hiring to candidates looking, we take the time to listen and learn. We hear your likes, talents, and needs. We gain an understanding, and with it, we’re able to facilitate lasting relationships between businesses and people.

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