The Cost of an Internal Facilities Management Team vs. External Facilities Management Consultants: Why Outsourcing is the Smarter Choice

In business operations, facilities management plays a fundamental role in ensuring the efficiency and functionality of a company’s physical environment. Effective facilities management is essential for various tasks, from maintaining HVAC systems to ensuring workplace safety or managing daily operations. However, one critical decision facing most businesses is whether to retain or introduce an internal facilities management team or to hire external facilities management consultants. This article explores the cost implications of both options, focusing on why external resources can often provide better value and more flexibility.

Understanding Facilities Management

Facilities management incorporates various services that contribute to a company’s operations’ safety, efficiency, and sustainability. These services include maintenance, security, cleaning, and office planning. Effective facilities management ensures that the workplace supports the core activities of the business, enhances employee productivity and well-being, and meets all health and safety regulatory requirements.

Internal Facilities Management Team: The Hidden Costs

Maintaining an internal facilities management team involves several direct and indirect costs. Here are the primary factors to consider:

Salaries and Benefits

Employee salaries and benefits are the most significant expense of an internal team. Facilities managers, maintenance staff, and administrative support require competitive salary packages, potentially including holiday pay, healthcare, pension contributions, and other perks.

Training and Development

Facilities management is a dynamic field with evolving technologies and regulatory standards. Continuous training and development are essential to keep the internal team updated on best practices and all ongoing and new regulatory and compliance requirements. This investment in training and development can be costly and time-consuming.

Recruitment and Retention

Hiring skilled facilities management professionals can also be challenging and expensive. The recruitment process involves advertising, interviewing, and onboarding, all-consuming resources. Moreover, retaining talent requires ongoing efforts to ensure job satisfaction and career development.

Equipment and Technology

An internal team needs access to the latest tools and technology to perform their duties effectively. This includes maintenance tools and equipment, software for tracking and managing tasks and issues, and personal protective equipment (PPE). The initial investment and ongoing upgrades can add up significantly.

Overhead Costs

Beyond salaries and equipment, various overhead costs are associated with an internal team. These include physical office space, utilities, and administrative support. These expenses are often overlooked but can substantially impact the overall budget required.

External Facilities Management Consultants: Cost-Efficient Expertise

Hiring external facilities management consultants can offer several financial advantages over maintaining an internal team. Here’s why outsourcing can be a wiser choice for your business:

Reduced Overhead Costs

External facilities management consultants operate independently and do not require your business’s office space, utilities, or administrative support. This reduction in overhead costs can result in significant budget savings.

Access to Expertise

Facilities management consultants bring a wealth of knowledge and experience and a network of trusted contractors for the more specialised work. Specialists always stay current with the latest industry trends and regulations. This expertise can enhance the efficiency and effectiveness of your facilities management offering without needing expensive and time-consuming training.

Flexibility and Scalability

Outsourcing allows you to scale services up or down based on your company’s needs. Whether you require full-time support, part-time assistance, or project-specific expertise, external consultants offer the flexibility to adjust resources without the commitment of permanent hires. They are also available throughout the year with no cover required for holidays or sickness.

Cost Predictability

With external consultants, you have clear, contract-based pricing structures. This format helps in budgeting and financial planning, avoiding the unexpected costs associated with employee turnover, training, and equipment upgrades.

Focus on Core Business Activities

Outsourcing facilities management allows your internal team to concentrate on core business functions. By delegating non-core activities to experts, your company can improve productivity and focus on business growth and profitability.

Conclusion: The Outsourcing Advantage

While both internal and external facilities management options have their benefits, the financial advantages of outsourcing are clear. By reducing overhead costs, accessing specialised expertise, offering ease in scalability, and ensuring pre-determined costs, external facilities management consultants provide better value for money. Businesses can benefit from enhanced efficiency and focus on what they do best by leveraging the expertise of professional consultants.

In today’s competitive business environment, making wise financial decisions is crucial. Outsourcing facilities management is a cost-saving measure and a strategic move towards operational excellence and sustainable growth. Embrace the future of facilities management by partnering with external consultants, allowing you to focus on your business development.

Ready to transform your facilities management strategy? Contact us today to learn more about how our expert consultants can provide your business with the best value and support.

Receive the latest news in your email