The Benefits of Facility Services Outsourcing Business case
Three Core Reasons to Perform Your own Business case maths and see the benefits for your situation.
1️⃣Reducing Costs 2️⃣Improving value 3️⃣Mitigating Risk
These three reasons add up to saving your business a considerable amount, even in the near term.
Investing in Outsourcing Facility Services for your team, and their property maintenance needs is an easy process that can be implemented in a “peace meal” manner. at your pace. The investment doesn’t need to be a single, disruptive change event.
Tangible, Financial Outcomes from Facility Services Outsourcing
Is your business in the position to reconsider its maintenance and facility services strategies? Is there an opportunity to make financial gains, and bring your staff back into the core business?
Re-deployment of Staff
Unless you are providing Facility Services or property Management, then having staff dedicated to the task of facility services can carry both Risk and additional cost compared with outsourcing. Your core business has increased opportunity and potential by introducing an external facility services system. To Explain:
✅ Consider your core business activity, your expertise
How Does Outsourcing Mitigate these Costs and Risks
Your core business is what you are insured for, it is what you understand and it is your daily focus. Our Business is Facility Services, we have the resources, the insurances, and the experience because we work with all its variables every single day.
Facility Services Outsourcing has clear tangible financial benefits to your business:
Outsourcing Facility Services: The Math
One Component of the three is reducing costs, one core item in reducing costs brings your staff back into the core activities of your business
Full-time Employee – “Shirly” Salary/Wage – $120,000 per year Superannuation – $11,400 per year Sick Leave & Annual Leave are included in the figures above, but what if another staff member needs to do the job in the absence of the primary Facility manager. Let us give a cost to this of $10,000 (which is conservative and based on 4 weeks total leave). Keep in mind, this Secondary staff member is not doing their core business during this time. We’ll say your business has a total cost of circa $141,400 for performing it’s own Facility Management. What if this money was put back into your core business activities, how much could $141,400 make you, instead of being pure cost?
If you put this $141,400 back into the business for core business activities, how much would you make from this $141,400? Would you make 2 x the amount, 2.5 x the amount, or maybe even 3 x? Let us be conservative, and let’s say you make 2 x. that is, this employee now creates an income to the business of $282,800, covering the expenses, cost of sales, and putting something back to the bottom line. Let us say your business runs at 15% profit EBIT. Then the revenue on the bottom line is $42,420. Rather than having a cost of $141,400, the business now has a profit of $42420. so the business is now in front by $141,400 + $42,420 which is $183,820. So what is the cost of Outsourcing Facility Services?
Indirect Savings Opportunities
Key Investment Savings Opportunities. These start you thinking about direct and indirect costs for your Facility Services Outsourcing business case
✅ The floor space in your office is returned to you.
Outsourcing Facility Services will mitigate financial risk. How?
Risk Management is a Core Part of What We Do
Let’s compare a few scenarios to demonstrate
The wrong trade is called to solve a problem With internal Facility services, this additional cost is on the business. Yet, if the facility services is outsourced, the cost is on us, as made the error. Major property damage occurs during maintenance. if the internal facility services have this event the cost is on the insurance of the business, assuming the business is actually insured for such an event. If you are outsourcing with us, then the issue is with us to make good and/or put it through our insurance. You are “off the hook” Workplace Health and Safety Fail Do you perform regular toolbox talks with your facility services crew? Are there activities monitored by a third party? Do you have ALL the relevant SWMS (Safe Work Method Statements) in place? How will you stand with Work Cover? These indirect costs and the direct wage costs all compound in the Facility Services Outsourcing business case.