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I’ve talked in the past about the concept of “buy, build, borrow”. It’s the idea that when organizations are looking for talent, they need to consider whether they want to buy (hire from the outside), build (develop current employees), or borrow (outsourcing work to freelancers or contractors). Each strategy has its advantages and challenges. 

Today, I want to focus on the last one – borrow. There are many reasons that an organization might want to consider a borrow (aka outsourcing) strategy.

They don’t want to add to their existing headcount. I’ve worked for several companies that didn’t want to grow their staffing levels. They decided to partner with consultants or contractors that they could use when they needed them. An example might be training. Instead of having a large learning and development department, the organization might opt for a smaller team and use consultants for certain programs. 

There are external resources that can do the work better, cheaper, and/or faster. Some companies have developed an expertise that allows them to do the work better than doing it in-house. Or cheaper than doing it internally. Maybe even faster that it can be done inside the company. It’s not that the company can’t do it … it’s that the company’s resources are better spent elsewhere. For instance, I’m hearing about organizations outsourcing tasks like updating policies and the employee handbook. Can the HR team do it? Sure. Is that how you want them spending their time? Probably not. Maybe they should focus on those open job requisitions and workplace investigations instead. 

You get the point. There are many business reasons for organizations to use freelancers, contractors, and consultants as part of their operation. The key to a successful borrow strategy is having a good outsourcing process. Here are some things to keep in mind.

Identify the business need. Before immediately deciding to outsource something, the organization should look at what they’re trying to accomplish. Understanding the business goal will make the next steps easier. And this is going to be important in evaluating the consultant’s performance later. 

Determine the must-haves and nice-to-haves. List the must-have knowledge, skills, and abilities (KSAs)expected in a freelancer. Yes, it’s great when we get some of those nice-to-haves … but don’t let a contractor’s flashy presentation distract from whether they have proven capabilities. 

Assess potential partners. Always a good idea to talk with several potential partners and then decide what’s best for the organization. One thing the organization might want to consider is whether the consultant has the capacity to grow with the organization.

Select the partner and negotiate the agreement. I know this goes without saying, but make sure the organization understands the contract they’re signing including how to cancel the agreement. 

Manage the scope of work and regularly evaluate. Hiring a outside partner does not mean the organization doesn’t need to manage the work. The organization should be prepared to do their part. In addition, the company should regularly evaluate the consultant’s performance against goals. FYI – the consultant is doing the same – they are evaluating if the company is a good piece of business.   

Using the services of a contractor or consultant doesn’t have to be agonizing. Using a good process and having a well-thought-out agreement can be the start of a successful long-term partnership. 

Image captured by Sharlyn Lauby while exploring the streets of Orlando, FL
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25/03/2025 – 12:03 /Sharlyn Lauby
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