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Understanding the Effects Outsourcing Has on Employees and the Workplace

In a business world increasingly reliant on virtual employees and contractors, it can be difficult to strike a balance between what makes good business sense and what is good for corporate culture.

Outsourcing is at the heart of this difficult question. Since the economic crisis of 2008, companies have been trying to find creative ways to lessen costs to remain competitive. Human resource professionals, CEOs, and managers are all under immense pressure to maintain productivity while managing their bottom line.

Outsourcing impacts all industries, and the main goal is to balance two things; keeping a company robust, while also making sure employees are happy with the new business environment.

Why Do Companies Outsource?

Companies have various reasons to outsource work. Some small to mid-size companies secure contracts that contain elements they can’t handle internally. Sometimes companies secure an abundance of work and can only meet deadlines if they outsource components of the contract to 3rd party companies.

But often, companies will outsource because they do not have the capital to hire additional full-time employees. Benefits, for example, can be costly. Some employers help company growth through outsourcing until they can grow their employee pool.

Outsourcing provides companies with an overall market advantage by intensifying their focus on ancillary services that can give them a leg-up over the competition. It can also act as a beneficiary source for actual employees who feel swamped due to workload or time constraints.

Potential Effects of Outsourcing On Company Culture

The value of outsourcing in a modern business environment cannot be overstated. After all, being budget conscious is as high a priority as sales and marketing. The immediate positive? Full-time employees enjoy some weight lifted from their shoulders. It's important for managers to lead by example, too. Encouraging employees to view outside contractors as complimentary goes a long way. Furthermore, these contractors are often a necessary business component to the quality of work being produced.

Commonly, some employees develop concerns about their job security as their employers outsource to enhance the company’s productivity levels. But these concerns can be overcome if management treats in-house employees as a top priority. Communicating the value of in-house employees, with reminders their jobs aren't in jeopardy, is key to maintaining healthy company culture.

How Does an Organization’s Culture Support/Impact Outsourcing?

Securing a personal identity is an important facet of every person’s life, including finding a level of comfort within their professional identities. Employers who are successful at integrating outsourcing with their internal personnel are almost always employers who have given their employees a sense of security.

People perform better when they feel like they are part of a unit. Employers have a profound responsibility to foster a sense of belonging among employees as a way to keep company morale high, which in turn ensures productivity levels will also be maximized.

Outsourcing can compliment a healthy company culture when it provides a relief line for employees or a facet that does not interfere heavily with duties assigned to internal workers. When executed effectively, outsourcing is one of the most beneficial aspects of company culture, with its importance measured by both numbers and morale.

Rethinking Company Culture

Many people believe the financial crisis and subsequent recession of 2008 forever changed the way companies conduct business. A new outlook emerged, built out of a need to remain innovative, resourceful, and solvent.

In many ways, outsourcing is a way for companies to show employees they have a long career ahead of them. Think about it: hiring office support solutions are an indication of confidence. These contractors frequently help support an existing team. This allows an organization to focus on navigating growth and success so that it can stay in business longer.

Why is Work Culture so Important?

Not so long ago, certain business sectors changed their office layouts from typical cubicle-style offices to open concept spaces. The results were stark as most employees embraced the new communal-style digs, citing a more enthused work ethic and a feeling that they were part of something bigger than themselves.

A good outsourcing definition is not just about the bottom line, but how it helps to create a work environment that captures the same type of communal office culture.

Businesses need to maintain a certain level of comradery. This lets them face unseen challenges with the same enthusiasm they have when everything is running like clockwork.

Work culture matters, and by utilizing modern business strategies like outsourcing, companies can remain a step ahead of their competitors, while driving successes internally.

Because in today’s tough business climate, the only thing that matters more than the bottom line is the morale of the workers who help you maintain it.