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Save Money and Hire Experts – 3 Ways to Begin Outsourcing

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Industry Advisor by Jose Perez, Jr.

RISMEDIA, Sept. 22, 2008-In this budget-conscious environment we are living in, many brokers are looking for ways to save money without giving up the level of services they offer agents and customers. Unfortunately, the first budgets to be cut in a tough market are the very things that brokers need to succeed: recruiting, marketing and training.

So how can you continue to bring in talent to do these and other functions without absorbing expensive salaries and the burden of payroll taxes and health insurance benefits?

Outsourcing…defined as the purchase by a company of labor from a source outside the company rather than using the company’s staff.

Ask yourself the following:

- Do you use ADP or Paychex for payroll?
- Do you use an outside vendor to handle your technology needs?
- Have you hired a recruiter to help hire agents?

If you answered “yes” to any of these questions, you are already outsourcing.

If you think outsourcing might be for you, here are a few tips that will help you get started:

Talk to other brokers and managers to see if they have already successfully outsourced in the areas you may need help with.

Ask the outsource vendor about their level of experience in directly dealing with the issues you are trying to resolve, their previous experience with other clients and/or employers, and how long they have been providing said services.

Always sign a confidentiality or non-disclosure agreement before allowing any outsource vendor too much access to your company’s operations.

Outsourcing can be a “win-win” for most brokers if they are willing to trust an outside advisor into their business.

Jose I. Perez, Jr. is the president of PCMS Consulting, a full-service consulting organization.

For more information, please e-mail jperez@pcmsconsulting.com.

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