If you are running a business, you might wonder whether you should hire full-time employees (FTEs) or outsource some of the work to vendors offering Managed Programs. Both options have pros and cons, and the best choice depends on your specific needs and goals. In this blog post, we will compare the benefits of a vendor’s Managed Program versus hiring full-time employees, and help you decide which is right for you.
What is a vendor’s Managed Program?
A vendor’s Managed Program is a service that provides you with a team of skilled professionals who can handle various aspects of a project or workload. The vendor is responsible for staffing and managing the team, ensuring quality, and delivering the work on time and within budget. You pay the vendor either by the hour or by a fixed fee, depending on the contract.
What are the benefits of a vendor’s Managed Program?
There are several benefits of outsourcing work to a vendor’s Managed Program, such as:
**Cost savings**: Hiring full-time employees can be expensive, especially when you factor in salaries, benefits, taxes, training, and overhead costs. A vendor’s Managed Program can help you save money by providing you with flexible and scalable resources that you only pay for when you need them. You can also avoid the hidden costs of hiring FTEs, such as turnover, absenteeism, and low productivity.
**Risk mitigation**: Working with a vendor’s Managed Program can reduce your exposure to various risks, such as operational, financial, or regulatory risks. A vendor can provide you with verified and qualified professionals who have the necessary certifications and experience to handle your project. A vendor can also track and measure the performance of the team and ensure compliance with your requirements and standards.
**Optimized performance**: A vendor’s Managed Program can help you optimize your project performance by providing you with access to a diverse pool of talent and expertise that you might not have in-house. A vendor can also leverage best practices and innovative solutions to deliver high-quality work that meets your expectations and goals.
**Focus on core competencies**: By outsourcing some of your project work to a vendor’s Managed Program, you can free up your time and resources to focus on your core competencies and strategic initiatives. You can also benefit from the vendor’s insights and feedback on how to improve your project outcomes and processes.
When should you hire full-time employees?
Hiring full-time employees might be a better option for you if:
**You have a long-term or ongoing need for certain skills or roles that are essential for your business’s success.
**You want to build a strong organizational culture and loyalty among your staff.
**You need more control and flexibility over your project team and their work.
**You have the budget and capacity to recruit, train, and retain FTEs.
There is no one-size-fits-all answer to whether you should hire full-time employees or outsource some of your project work to a vendor’s Managed Program. Both options have advantages and disadvantages, and the best choice depends on your specific situation and objectives. To make an informed decision, you should consider factors such as cost, risk, performance, and focus, and weigh them against your needs and goals.
SQ Risk Managed Programs are flexible custom-designed solutions that align your business resources with our subject matter experts to better position your risk management efforts.