Why is Outsourcing Cost-Effective?
Environmental, Health and Safety (EH&S) management is more than just costly, it is time consuming for the personnel assigned to manage the EH&S issues of the company. In addition to the typical on-the-job training, EH&S staff require offsite training and professional development to become proficient in all the issues of regulatory importance to your facility or operation. Moreover, if the company operates multiple facilities for which such staff have responsibility, the task of training and development can be even more daunting – stretching existing resources even thinner. Professional development, training and management of EH&S internally can be challenging and expensive.
In addition to the cost of personnel training and development, there is the risk of ineffective compliance management. Companies look to solve this dilemma in a number of ways, here are a few examples:
- Some companies do not hire EH&S managers, but assign the management of EH&S to existing in-house non-environmental personnel. In this case how much profitability of the company is being lost due to the diversion of key personnel from the mission of the company? What is the cost of the lost opportunities to reduce expenses and increase competitiveness in the key business functions? Do these personnel have the “depth of knowledge” to effectively manage compliance?
- Others companies look to address gaps within internal EH&S staff know-how by hiring consultants to provide multi-facility and/or in-depth subject matter expertise. This approach can be effective in certain circumstances; however, there are possible inefficiencies if the client company has its own staff for the environmental and safety functions. The effort must be focused to limit the possibility of “duplication of efforts.” More importantly, the consultant must be engaged in a relationship of trust and integrity that ensures the client is getting the level of service they deserve. ESC can provide this level of consulting service to your organization.
Outsourcing removes the costly training curve noted above and allows the company’s EH&S concerns to be managed with an already-developed, proven to work system. The company benefits from the perspective and cost savings that can be achieved by having its programs directed by high level professionals who have 20 years or more of diverse, multi-facility EH&S experience.
The outsource company can manage compliance effectively since it has various staff matched to the expertise needed for the particular task – spreading this cost out over many concerns. Completion of the same report numerous times a year for different companies means that our outsource specialists can complete it if more efficiently, with a greater understanding of the issues that lead to accurate and thorough reporting. Our methods and knowledge mean that your management does not have to “learn” how to most effectively manage compliance.
“Development of environmental, health and safety expertise does not contribute to the competitiveness of the company. No payoff is realized from this ineffective investment.” Principal Consultant of ESC
How much is your company losing in profits by diverting its management’s focus away from the achievement of more productive and efficient business operation?
Please contact us for our free report on outsourcing for more information on how outsourcing might be more cost effective for your company.