Outsourcing executives might sound strange, after all, the C-suite is the last part of a company anyone would think to outsource, right? Well, yes, maybe… However, no company is defined by one individual, therefore, it could be beneficial under the right circumstances. It doesn’t seem so odd when you consider that an outsourced CMO, CFO, or CIO is like any other business investment. All hiring decisions come down to need, budget, and weighing out the positive and negative. If a company’s need for certain positions don’t line up with the costs or logistics of a full-time executive hire, outsourcing executives might offer an option that would meet all needs without risking too much. Here are some of the main benefits of doing this.
For any business, expertise is something that can make or break forward momentum and success. Smaller companies might not have the resources to enlist the help of industry gurus or hire the best candidates. This is where outsourcing could be a smart move. For example, an outsourced CFO could help patch any gaps that an owner has in handling money and investments. This can be especially helpful if there are specific tasks or topics that expertise is needed.
Unless a company is large, the C-Suite is probably made of people already in the owner’s network. After all, it’s nice to run a business with the help of people that are known and trusted. That said, familiarity can lead to a short-sighted approach. A company and its teams can develop patterns and miss things that someone from the outside might might see and easily correct.
If you are in this situation, as with expertise, look for what you don’t currently have. If you’re a new business, look for someone with a veteran viewpoint. Older companies might benefit from someone young and dynamic to bring a fresh viewpoint to operations. Outsourcing executives is a great opportunity to create some intellectual diversity in your business, which can be hard to come by in most offices.
High Growth Potential
It doesn’t matter whether a business is a startup with a handful of employees or a much bigger operation, filling executive roles is expensive to do. Executive search firms will often charge a huge amount just to search for potential candidates, and once you start adding in salary and onboarding costs, the numbers can quickly get way out of your budget.
For businesses who want to grow in the next few years, it makes perfect financial sense to opt for short or middle-term executive outsourcing than long-term hiring. Outsourcing executives will get you the expertise and bandwidth that you need on certain issues without weighing your company down with huge costs, leaving you just as dynamic as you already were.
The idea of outsourcing an executive would have seemed impossible just a decade ago. However, the rise of digital commuting and virtual offices have made an outsourced executive not all that different from having an in-house one. The prospect of having bi-weekly calls with a remote team might have seemed annoying in the past, but now it’s the norm.
Outsourcing your executives might even help with the digital streamlining process. Companies that provide these services have online communication mastered, and the tricks they share with you could be integrated throughout your business. This is an added bonus to an already valuable investment.