If your company is still working from home to keep employees safe, you are not alone. Until the pandemic recedes, many companies are allowing employees to work remotely. And some may never come back to the office, putting companies in a bind when it comes to facility services. Having an in-house janitorial staff makes sense when there are people inside of the buildings. When the building is empty, though, there is only so much work to do.
Another aspect of the insourcing vs. outsourcing debate is budgeting. Many companies are downsizing because of COVID-19, and there are too many uncertainties to estimate what the economy in 2021 will look like. Consequently, CEOs, CFOs, and other leaders are revising their budgets and thinking about costs: How can we maintain our janitorial and other facility services without adding unnecessary risk?
Reducing facility maintenance costs has always been a goal for companies. Still, there probably has never been more urgency than now, especially when many don’t know when their buildings will reopen for business.
Outsourcing can be an answer, but there are disadvantages here too. This post will resume this all-too-familiar debate and go over what you should consider as you determine what is best for your business.
Employee Morale
Your most important asset is your employees. Creating a positive work environment increases productivity and drives a sense of culture. But it is tough for companies to create a positive work environment if employees are always looking over their shoulders, scared that a third-party provider will replace them.
Outsourcing could save your company money, but what effect will that have on the people you rely on to keep the lights on?
Reliance on Another Company
Depending on the third-party company and your contract terms, you may relinquish some control over your company’s day-to-day operations. While these will likely be non-core functions, it is something to consider as you determine whether you should outsource some facility services to another company. It means you need to find a partner who has expertise in areas that matter to your company, understands your business, and will be an asset to the company.
Another factor to keep in mind is financial health and management competency. When you keep everything in-house, you only need to consider your own company’s finances, culture, and liabilities. When you bring another party in, you need to be sure they are a good company that isn’t going to shut down unexpectedly one day or have glaring organizational issues that could affect your service quality.
This, of course, can be mitigated by hiring a reputable vendor, but it is something you should consider as you conduct a vendor search.
Cost-Savings
Many organizations start the outsourcing conversation because they need to reduce costs. Maintaining an in-house staff means you are paying for employee salaries, overtime, benefits, and equipment. These costs can be eliminated by outsourcing janitorial, landscaping, and other soft services that your facility needs.
Flexibility
As we explained above, the pandemic has shown how quickly things can change. While having an in-house team clean and disinfect your building may have made sense last year, it doesn’t now if most of your people are working remotely. The hope is that more businesses will open up soon, but it is no guarantee. And the pandemic is just one example. Disruptions happen all of the time, and businesses need to be flexible to overcome them. Outsourcing allows companies to scale their facility services investment based on current conditions and better adapt if circumstances change.
Technical Expertise
As fewer people are learning a trade and acquiring the skills and experience needed for facility services roles, it is becoming more challenging to hire high-quality candidates in-house. When you outsource these services to a third-party company that focuses on facility management, janitorial services, landscaping, repairs, and other facility services, you can feel confident that their people will do a good job because these services are their core business. Plus, you can put your current team in roles where they will succeed and make the most significant impact on your company.
Both sides make some good points, but does outsourcing need to be a zero-sum game? A successful outsourcing strategy may contain elements of in-house involvement. You can always start small and outsource a few non-core services to a provider if you’re hesitant to go all-in.
Over time, you might find that outsourcing helps you save money and allows you to allocate your resources better and adapt to changes in your market. Or you might find that it makes sense to keep some or all of your facility services in-house.
We can’t stress enough, though, that it’s crucial to put the appropriate time and effort into the search process to find a facility services provider that will serve your needs. Crucial items to consider include: how the provider handles the transition, employee training and development, previous client history, and what the provider specializes in.
You are searching for a partner and a company to serve as an extension of your company and brand. One that takes ownership and keeps your facility running smoothly. If you are looking for ways to save money on facility management and other services, we encourage you to contact us so we can show you what it’s like to partner with Berman. We can answer any questions you have and help you make the best decision for your business.