Sourcing dilemma

FM applies to a company of any size, but there can be stark differences in terms of resourcing. Clearly, major factors are budget and the status of FM – larger companies will generally have more financial resources and often a formal FM strategy, whereas, within smaller companies, FM tasks must be done with existing resources.

There are many small companies with less than 250 employees, large enough to have the capacity to take on dedicated staff for various areas of FM. This is where an interesting outsourcing/in-house balance comes into play. Indeed, this is very pertinent to my day-to-day work at Charterhouse Holdings plc, an SME with just under 100 employees.

SME’s sphere will invariably share traits, such as having to outsource certain, specialist aspects of FM. Specialist services such as the servicing and testing of major infrastructure – such as fixed wire and other electrical testing – have to be outsourced to qualified contractors. For other services how to dedicate resources for general FM activities must also be considered and decisions must be taken on whether to outsource services or to keep everything in-house.

BENEFITS OF OUTSOURCING

One key benefit of outsourcing, particularly for SMEs, is the fact that any staffing issues – performance, conduct and absence in particular – are the responsibility of the agency.

Yet outsourcing comes at a premium, the fee per operative often being much higher than if they were in direct employment. It is a balancing act of whether the convenience of outsourcing is worth the extra expenditure.

At Charterhouse, we employ a maintenance operative to carry out a variety of general FM activities, being tasked to fix issues before calling in contractors. It would not make sense to outsource this position, not least because much FM activity at Charterhouse is reactive in nature and service level agreements with agencies may be very rigid and not allow immediate flexibility to resolve unforeseen issues.

On the other hand, we outsourced our cleaning activities as we needed to increase provision and it did not make sense to employ a full-time cleaner yet outsource a part-time one. Recruitment and retention of cleaning staff is not easy, so the convenience of these being the responsibility of the agency removes often time-consuming hurdles.

Nevertheless, it is very important to treat any contractors based on site as if they are employees. Charterhouse-based cleaning personnel contribute as much to the company’s functions as employees are included in any team events, such as charity days or Christmas parties. Feeling part of the team increases morale and engagement, adding value for money for the fee paid to the agency.

BALANCING NEEDS

The outsourcing/in-house balance can be considered when there is sufficient capacity to take on personnel dedicated solely to FM activities. Sticking solely to outsourcing or to keeping all activity in-house isn’t the answer: it is important to consider the pros and cons of both approaches and resource accordingly to whichever works best for each aspect of FM.

Every company is unique and there is no one-size-fits-all solution – the outsourcing/in-house question should be focussed on the company’s individual needs and what benefits it specifically, not based on what other companies do. This is especially important for smaller companies where making the right decisions is critical financially and in terms of overall staffing levels and resourcing.

STEPHEN BOTT
HR & Facilities Manager
Charterhouse Holdings