The Impact of Outsourcing Administration Services on Employee Productivity and Morale

Don’t lose sight of the benefits that come with working with outsourcing administration services.

We live in unprecedented times where companies must make extraordinary decisions for survival. If you need to cut costs, one of the best ways to cut your company’s risk is to begin outsourcing services.

Most companies carry out this strategy to increase resource capacity and productivity. In other words, they need to run smoother and spend less money.

Implementing administrative outsourcing services doesn’t always go over well with your employees. Some employees will rebel against this decision. They believe outsourcing services impact their job. It leads to worry and concern over being replaced.

How will outsourcing affect your employees’ morale and productivity? Keep reading to find out.

Cultural Impact on Employee Morale

Businesses of all sizes are turning to outsourcing. It helps them become more efficient, save money, and make their employees happier. You can improve employee morale by outsourcing services.

Outsourcing is when a company outsources certain tasks, functions, or services to a third-party provider. Outsourcing can help cut down on overhead costs. It can make the business more efficient, leading to a better work environment for employees.

When it comes to administrative outsourcing, there are pros and cons. It can have a big impact on company culture. The impact can lead to lower productivity and employee morale if handled wrong.

The decision could cause confusion about which tasks to outsource and which should stay in-house.

Biggest Risk

The biggest risk to corporate culture is fear from in-house employees. If they think they might get replaced by someone else, they’ll be more likely to look for a new job. 

The good news is that the people who feel the safest about outsourcing are the least likely to leave.

Employers can help prevent outsourcing from hurting corporate culture by being transparent. Explain why they’re outsourcing tasks and how they’ll help in-house employees. Examples are eliminating deadlines or letting them focus on their essential duties.

Types of Administrative Outsourcing Services

Outsourcing can help you get the services you need for your business, like marketing, HR, and administrative support. Some of the most common types of administrative roles outsourcing include:

Accounts Payable and Receivables

It’s important to keep your financial records organised. Outsourcing administrative accounting tasks means you can reduce the number of people in these roles.

Any or all of these duties can be outsourced:

  • Expense tracking
  • Accounts Receivable
  • Financial Reports
  • Invoicing
  • Accounts Payable

If your company has an accountant, they can oversee monthly reports. By doing so, you have checks and balances.

Appointment Scheduler

Whether you’re a medical practice, auto shop, or beauty salon, appointments are the heart and soul of so many businesses. 

An outsourced service will integrate with your current calendar and CRM. You’re always updated on new appointments and changes. The outsourcing provider can automate appointment reminders and confirmations.

Client Managers and Processors

Onboarding new clients is essential to businesses. In some industries, these roles can make or break the client relationship. An online intake form can save you some time, but if you want to get the most out of your intake, an outsourced service can take care of all the admin stuff from beginning to end. 

Customer Service Representatives

Outsourcing admin services usually start with customer service roles. Clients want immediate access to your company when they have a problem or need answers. Without CSRs, businesses would be in serious trouble. 


One of the simplest and most important admin tasks you can outsource is receptionist duties. You don’t want your clients or business associates to be disappointed. They should be able to get through to someone to answer their questions.

A virtual receptionist or call centre can handle all incoming calls, so you don’t have to.

Advantages of Administrative Outsourcing Services 

As mentioned above, companies need to be honest with employees when it comes to decisions about hiring an administrative outsourcing company. There’s no doubt the decision will impact employee morale.

Most likely, you’re already aware of the importance of maintaining employee productivity at an optimal level. However, there are still a lot of companies that struggle with employee productivity after outsourcing admin duties.

Lower productivity could be because there was already low morale in the work environment. Or employees already knew higher-ups were discussing outsourcing. 

Let’s look at how administrative outsourcing can improve the well-being of your employees and boost morale. 

Reduce Stress

Employees are aware of the stress their jobs are causing. Their reaction is to work harder and not smarter. Outsourcing gives them a chance to work smarter. 

Introduce the positives of using administrative outsourcing services. Employees can hand off tedious tasks is one. It frees up time to focus on other important job duties.

To assist them in seeing the benefits of the decision, introduce well-being programs to help them feel supported and valued.

Stop Employee Turnover

People quit their jobs because they are overworked and undervalued. Outsourcing services can turn that trend around.

When introduced correctly, employees see the value in outsourcing admin duties. Instead of feeling their contributions don’t matter, they feel empowered to perform better. 

In the end, your turnover rate should decline. Keeping valuable team members should be a goal of every company.

Employee Engagement

Host an information session. Rolling out outsourcing plans to your team can increase employee engagement. A company email announcing you’ve hired an administrative outsourcing company is impersonal.

Employees want to feel like they’re a part of important company decisions. They don’t want to be the benefactor of what’s already been decided.

When they feel respected and appreciated, they’re more likely to stay engaged and take charge of their work. The result is increased productivity and becoming better at what they do.

Keep Valued Employees Informed

Administrative outsourcing services are designed to make your company stronger, not weaker. Keep valued employees by including them in the process. 

Learn more about how our business process outsourcing team, the Vivacity Team, can help your company. Get in touch with us today.  

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