• Phone(636) 764 6607
  • Address12015 Manchester Road, Suite 120 St. Louis, Missouri 63131
  • Phone(636) 764 6607
  • Address12015 Manchester Road, Suite 120 St. Louis, Missouri 63131

The Benefits of Outsourcing During a Recession

The Benefits of Outsourcing During a Recession


There is a growing consensus that the United States and the global economy are facing a recession. The world’s largest corporations are shedding jobs to lower operating expenses. Amazon, Twitter, and Peloton all announced tens of thousands of layoffs.

These moves are not isolated to the world’s largest businesses. Small businesses across the country are also looking to reduce their operating costs. This includes service companies like HVAC, electricians, and plumbers.

There is a way to do more with less. You can reduce operating costs by outsourcing specific tasking.

Read on to learn about the benefits of outsourcing during a recession. Explore topics such as how outsourcing works and common recession indicators.

What Does a Recession Mean for Your Business?

Before diving into outsourcing, it is important to understand what a recession is and its common indicators. Simply put, a recession is a period with sustained and significant downward economic activity.

Economists typically identify a recession when Gross Domestic Product (GDP) declines for two consecutive quarters. This already occurred in the United States in 2022. There are other, more complex ways to identify a recession.

For America’s small businesses, a recession is marked by decreased consumer spending. People are willing to push off maintenance on their HVAC or plumbing systems. They are less likely to replace garage doors or install a privacy gate.

Less revenue makes it harder for you to keep employees. You may decide to do without administrative support personnel to lower costs.

What Are the Benefits of Outsourcing During a Recession?

Many people question how adding the cost of outsourcing to your expenses can help. For starters, you are outsourcing existing work that is currently performed by an in-house employee. This employee is replaced by a company such as Free2Grow.

Without this employee on payroll, you can save considerable overhead dollars. Your business is no longer responsible for providing health care and retirement benefits. Matching 401k savings accounts or pension programs is the responsibility of another company now.

You are also off the hook for payroll taxes like Social Security and Medicare. You do not have to contribute to state programs for disability and unemployment.

Paid time off programs are also on the chopping block. You do not have to worry about employees calling out sick or going on extended vacations.

Office space is another significant benefit. By outsourcing administrative work, you can eliminate the need for a cubicle or office furniture.

Over the long run, you can find a smaller and less expensive building to operate out of. The end result is lower overhead costs with less expensive rent and utility bills.

While off-site administrative support is popular, you can still hire on-site options and achieve cost savings. This allows your business to re-purpose existing employees for other work, including strategic growth initiatives. Meanwhile, you do not sacrifice customer service as your Free2Grow staffers handle the front lines.

Your Guide to Outsourcing

You are now ready to consider outsourcing for HVAC companies and other professional contractors. This is an effective way to reduce operating expenses and increase your profit margins.

The best way to keep afloat during a recession is to reduce excessive costs. With this strategy, you can keep operating at full tilt with an outsourced staff member performing administrative tasks.

If you are planning on outsourcing during a recession, contact us today to learn more.