Business landscape has changed the way companies look to streamline operations to reduce operational expenses (OPEX). Small businesses are reducing expenses by sub-contracting specific projects and assignments to outside entities. Type This Ltd. successfully mastered the combination of both aspects, subcontracting and outsourcing by developing an “in-source” work model. Type This Ltd. provides strategic back office support to businesses, non-profit organizations, law firms, and entrepreneurs. Type This Ltd. can help any businesses by directly in-sourcing customized work products to the business owner’s specifications.
The top three advantages of using Type This Ltd. services are cost savings, increased flexibility, and reduced risk of liability. Businesses save money because they are not required to make standard employer contributions such as payroll taxes, unemployment, disability insurance, social security, and worker’s compensation. In addition, businesses do not have to provide fringe benefits such as insurance, vacation, sick leave, or retirement plans. Type This, Ltd. can increase flexibility by completing specific projects allowing the business to try out new ventures without hiring in-house personnel with specialized knowledge. Type This, Ltd. can reduce liability because laws designed to protect employees (i.e. anti-discrimination and wrongful termination) would not apply to Type This, Ltd. or its agents.
Even though most employers pay sub-contractors/vendors more per hour than they would pay employees to do the same work, total overall cost is reduced.
As an example, typical benefits for a $50,000 salaried employee include life insurance, and health coverage. Other benefits could include long-term disability insurance, tuition reimbursement, retirement plans, etc. These involve the actual payment of benefits by the employer. There are also "self-funded" plans where the employer contribution is the administrative costs- e.g. 401(k) savings plans that withhold portions of the employee’s salary. Vacation is another cost incorporated in the basic salary.
The costs to this point (basic salary, employment taxes and benefits) are typically in the 1.25 to 1.4 times base salary range- e.g. the value range for a $50,000/year employee could easily cost the employer $62,500 to $70,000. Companies will also need to provide some physical space to house the new employee. Furnishing the space, computer and telephone. Altogether, these expenses can quickly increase a business payroll costs by 20% to 30% or more.
Working with Type This, Ltd. allows employers greater leeway in hiring and letting go of workers, which can be especially advantageous for companies with fluctuating workloads. Business owners can hire a Type This agent for a task or project, knowing that the worker will depart after completing the job. Business owners will not have to face the trauma, expense, and potential legal trouble that can accompany firings and layoffs. Business owners would benefit immensely and may also enjoy greater efficiency because Type This agent will bring specialized expertise to the job, becoming productive immediately, eliminating the time and cost of training.
Just as there are advantages to utilizing independent sub-contracting engagements, there are also disadvantages as reported by unsatisfied customers. By acknowledging the weaknesses, Type This, Ltd. takes into serious consideration how to formulate a plan to overcome the cons that include the client’s loss of control of processing the work product. The analysis turns on whether the business has the right to control how to prepare the work. Type This, Ltd. avoids this by taking instructions from the client from start to finish. The client will always be in control of the work and work product processes. Some businesses have complained that when they use other independent sub-contractors have a hard time scheduling the services when the independent contractor works for multiple clients. Type This, Ltd. avoids this by making sure to complete all accepted assignments by the expected deadline date and allotting work orders accordingly simply by not overbooking or overextending our agents.
Another disadvantage is that businesses also lose the ability to terminate without cause. Terminating the services of an independent contractor must be in accordance with the notice requirements set forth in the parties’ agreement or the business will face liability for breach of contract. Type This, Ltd. is not in the business of retaining unhappy customers tied to a contract agreement. If an individual or company is not satisfied with their received services, Type This, Ltd. will terminate the contract.
Finally, we cannot fail to mention the disadvantages faced by businesses exposing themselves to liability with regards to confidentiality. Type This, Ltd. will maintain the strictest levels of security and confidentiality regarding any work product. Type This, Ltd. cannot overstate the importance of memorializing contractually. The precise nature of such relationships as well as the parties’ explicit understanding of where liability lies should the issue arises.
Strict measures and precautions must exist to safeguard the client and Type This, Ltd. from any harm or extensive liability. Eliminating the disadvantages removes the barriers prohibiting businesses from utilizing a Type This agent to fulfill a specialized need.