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In House vs. Outsourced: A Cost Story

What would you do with a 50% savings on the cost of a traditional employee? What could your team do with a reclaimed 552 staff hours over six months? Against conventional wisdom, we've seen that an outside expert can actually save you both money and time. This money and time can be better spent furthering your mission and meeting your goals.


I know what you’re thinking. Consultants are expensive. You can’t afford to outsource this particular position. You need to focus on your mission and be mindful of stewarding your donor's dollars. But, as valuable staff members leave, you're left filling knowledge gaps. You struggle to find the “right” person that can carry the torch to keep your organization moving forward. Staff transitions can come at a significant cost- the wrong person might be hired or the position might not be filled at all. Other staff members may try to backfill the lost position, forcing them to forego their own responsibilities.


As former, long-time nonprofit employees, we understand your concerns. We've been in those same situations ourselves. By working together with your internal team, we can help you build a strong foundational knowledge management program. Together we will get the routine, behind-the-scenes work done better, faster, and cheaper.


The numbers from our clients speak for themselves. One client reduced their knowledge management expense by more than $80,000- a direct savings of more than 50%. While we couldn’t help seal envelopes for an in-house mailing, or staff a reception desk at a gala, we were able to perform 85% of the incumbent team member’s responsibilities at a far lower cost than a traditional employee.


We found another client had spent 552 additional staff hours, and ultimately at a 5% higher cost than a workflow we had outlined for them. In this instance, the current global pandemic shut down all in-person operations for weeks. A backlog of donor gifts, as well as acknowledgment letters, immediately started piling up. As of today, that backlog still exists. Donors have not been recognized for their contributions, and staff members are still trying to make sure all gifts are properly entered into their CRM system.


The bottom line is simple. There are so many factors that go into the cost of an employee within an organization-and these costs go well beyond a salary. Counter to perceptions, working with an outside subject area expert can be far less expensive and more effective than a traditional hire. If a staff member is leaving the organization completely, that transition alone can add a significant cost that many forget to consider. We can work with your staff during that transition period to keep everything running smoothly. We can build better processes and amplify the talents of your team that are already in place.


Are you intrigued? If you think we can help, please reach out! We'd love to have a conversation and see how we can help you further your mission and meet your organizational goals.



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