Why Not Try Outsourcing To Resolve Your Human Resource Problem?

why not try outsourcing to resolve your human resource problem

You are a business owner in the Architecture, Engineering and Construction (AEC) Industry and facing difficulties in managing your labor resources. The number of projects fluctuates constantly, but you struggle to hire workers or allocate tasks effectively. The process of recruiting and training new employees not only takes time but also affects the progress of projects. The costs for new employees are rising, significantly increasing the total project expenses. If you are experiencing these difficulties, it’s time to consider outsourcing as a solution.

1. Let’s break down the ongoing workforce issues in your company.

Here are some common challenges you might be facing:

Difficulty in Hiring

Surely, you’re finding that recruiting engineers with the necessary knowledge and skills is more challenging than in previous years. The reason for this issue stems from the United States needing around 25,000 construction engineers annually in this decade, yet the current supply is falling short (U.S. Bureau of Labor Statistics). Additionally, in this U.S. context, the salary and benefits required for new engineers are escalating.

Many companies are struggling to attract engineers. They are focusing on their core areas and even turning down some projects because there aren’t enough skilled workers available.

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Difficulty in Hiring

Difficulty in Resource Allocation

Allocating resources becomes a challenge, especially during phases of project fluctuations. In this situation, adjusting the workload and the number of personnel to meet changing demands becomes a significant challenge. Sometimes, a company may find itself with excess staff for one project while facing a shortage of resources for another. This not only affects work efficiency but can also lead to increased costs and burdens in managing human resources.

The issue with Personnel Costs

Personnel costs, including facilities, salaries, insurance, and benefits, are a crucial part of the project budget. Additionally, you also have to cover regular training and development expenses for employees to use the latest software or participate in projects the company lacks experience in. If personnel costs are too high, it will significantly increase the overall project expenses, thereby impacting your profits considerably.

The issue with Employee Performance

Ensuring productivity and labor efficiency is a challenging task. If you don’t manage this well, resources can be wasted, especially as your team grows larger and the structure becomes more complex.

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The issue with Employee Performance

2. How Outsourcing Helps Solve Workforce Issues

Outsourcing helps reduce the burden in human resource management

When you entrust your tasks to a third party, they have sufficient resources to carry out the project on your behalf. The engineers employed by outsourcing companies are experienced and skilled, relieving you of the headache of allocating tasks to in-house engineers when project numbers fluctuate. This enhances your ability to efficiently manage various resources.

Moreover, you can avoid other risks such as leave requests or unexpected departures of employees, along with conflicts of interest in the workplace. These factors can disrupt the company’s operations.

Outsourcing helps reduce project costs

When you outsource in countries with low labor costs but maintained quality, you can significantly cut project expenses. Additionally, the responsibility for employee performance is transferred to third-party management. They ensure their engineers work efficiently, thereby reducing service costs.

Outsourcing helps you plan costs more easily

Typically, outsourcing services offer fixed-price packages or are based on specific tasks, making it easier for businesses to forecast and control expenses. You won’t have to manage many cost variables related to human resources.

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Outsourcing helps you plan costs more easily

Outsourcing helps improve the security of your company’s information

In a fiercely competitive labor market, the risk of employees moving to rival companies is significant, potentially leading to the disclosure of critical company information. However, when you adopt an outsourcing model, outsourcing partners often commit to ensuring reliable information security. This helps you avoid the risk of exposing crucial information.

Through the article, we have illustrated the challenges in your company’s workforce and provided the solution of outsourcing to address these difficulties. If you have any questions or need more information related to outsourcing, especially outsourcing in the AEC industry, please contact CivilOutsourcing via email: contact@civiloutsourcing.com or fill out the form below. We will contact and assist you immediately.