European exits, pandemics, now a cost of living crisis! Businesses are being hammered by these as much as anyone.
In these times businesses have had to make tough decisions, no only to keep growing but to survive! And this sometimes means making sacrifices, sacrifices that start with a capital R…
Redundancy… it’s a word dreaded by both employers and employees alike. For staff, it means their lives are turned upside down, for employees it causes irreparable damage to their employer and business reputation.
But in a world where fixed-cost removal means survival; businesses feel like they have no choice. And perhaps they didn’t, but that was before they knew of an alternative. That alternative is Shared-Workforce.
What is Shared-Workforce?
Shared-Workforce is a managed service provided by an external business. The service involves taking a team of employees off the hands of their current employer to remove the fixed cost of employment.
Their contracts don’t change and they will still be employed by their original employer but the cost of their employment will be covered by the Managed Service Provider. The MSP will then sell the service the team provides back to the employer but on an Outcome basis.
Which means the employer only pays for the service for as long as it is needed rather than constantly paying for an in-house team, even when the service is not always required.
When the original employer isn’t in need of that service, the MSP will provide work in the meantime until their service is required again. And so the workforce is being shared!
Why Shared-Workforce is the Best Alternative to Redundancy
The best way for a business to grow and survive in periods of economic uncertainty is to shift their fixed-costs to variables. Unfortunately, one of the most obvious ways to reduce costs in a business is to lay off workers.
But this should always be an absolute last resort for any company. Not only morally and ethically, but there’s no getting round the fact that making people redundant is also extremely bad for business.
Your employer reputation is permanently affected which may make it difficult to gain valuable talent from that point on even when it is needed. But as we have seen recently there can be huge media backlash for making people redundant.
However, Shared-Workforce provides all the business needs of an employer without the pitfalls that come with making people redundant! Another company covers the cost of the team, yet you still have access to the service if/when it is needed.
A fixed cost is shifted to a variable, growth is enabled, business reputation remains intact; workforce is shared.
The potential for ROI
Shared Workforce doesn’t just offer an opportunity to cut fixed-costs without making redundancies. There is also potential for return on investment by the MSP outsourcing your team to other businesses.
Which means not only would your business be turning a fixed-cost into a variable. It turns your team into an asset which could generate further revenue for the business.
Furthermore, your employees will have the opportunity to earn more and increase their individual portfolios by working for multiple businesses. Making it a literal win-win!