The Pros & Cons - Employ Your Own Staff or Outsource

Outsourcing

The Pros

• Creates the image of a much larger organisation
• Access to a team with wide skill sets
• Staffing
  • Sickness/Holiday/Maternity all covered
  • Management handled by Outsourcing Company
  • Training provided by Outsourcing Company
• No Employers NI Costs
• Improved Cash Flow as no requirement for
  • Office Equipment
  • Business Premises
  • Insurances
• Felxibility of access to resources/staff as required
• Bespoke reporting to ensure YOU are constantly aware of developments in your business.

The Cons

• No direct control over staff

Your Own Staff

The Pros

• Direct control over employees

The Cons

• Cover needed for absences
  • Holiday (28 days statutory min)
  • Sickness (Avg 8 days in 2008 - CIPD survey)
  • Maternity / Paternity
• Employer's NI Payments (12.8% of Gross Salary)
• Management of staff
• Training of staff
• Office equipment needed (desks, PCs, printers etc)
• Premises, so associated cost
  • Rent / Mortgage
  • Business Rates
  • Insurances (Buildings, Liabilities etc)