Outsourcing in Action
Case Study: Organizational Effectiveness and Outsourcing
Part III: Outsourcing in Action
Revisiting the Business Strategy: Buy, Build, and Borrow
As businesses grow and evolve, they often face decisions about how to allocate resources and expertise. The strategy of "Buy, Build, and Borrow," discussed in Part II, offers a framework for decision-making that helps companies determine where to invest their energy, money, and talent.
- Buy: Focus on things that simplify processes, reducing time and effort.
- Build: Invest in strategic differentiators that set your business apart.
- Borrow: Outsource tasks or projects that are infrequent or highly intensive.
Now, let’s explore how this principle plays out in real life with one of Chatfield Global LLC’s clients.
A Century-Old Business Transforms HR Operations
Our example client is a third-generation, family-owned company that has been operating for over 100 years, with 150 employees in 11 locations across the U.S. and Canada. As a heavy equipment distributor and Associated Equipment Distributors (AED) member, the company specializes in providing foundation equipment and related services. When their sole HR professional left the organization, they faced a critical need for HR support and expertise.
Rather than building an internal HR department, the client turned to Chatfield Global to explore outsourcing options, which were up and running within two weeks of deciding to outsource. This allowed the company to continue building its brand, purpose, social impact statement, and internal culture and focus on strategic areas like succession planning, knowing all other aspects of its HR function were in good hands.
What They Built
Chatfield Global’s focus on the “buy” and “borrow” tasks allowed our client to focus on building the following key areas:
- Company Brand: The company continued to strengthen its reputation and market presence.
- Succession Planning: The company prepared future leaders for key positions to ensure long-term success.
The intentional shift to focus internally on “build” tasks allowed our client to channel internal energy to culture, purpose, and social impact.
What They Bought and Borrowed from Chatfield Global
Recognizing the need for expert HR support, the client opted to “buy” and “borrow” key HR services from Chatfield Global, including the more tactical day-to-day HR activities.
- Compliance, Handbooks, Policies, and SOPs
- Employee Onboarding and Offboarding
- Employee Benefits Management
- Recruiting Process Management
- HRIS Implementation
- Workers’ Compensation and Safety Partnership
- Employee Relations and Investigations
- Talent Development and Performance Review Structure
- Annual HR Audit
- Organizational Communications
- Compensation Market Analysis
- HR Strategy
Recruiting Support: A Deeper Dive
One of the company’s immediate needs was recruiting for and filling six critical positions: A Yard and Parts Coordinator, a Service Assistant, two Service Technicians, an Accountant, and an Accounting and Payroll Specialist.
Over nine months, Chatfield Global managed the recruiting process for these roles, reducing internal management time to only time spent in key interviews and saving the company significant costs. Had the client outsourced hiring for these roles to a staffing firm, they would have paid an estimated 25-35% of each new hire’s salary as a placement fee, amounting to approximately $96,000.00. However, Chatfield Global’s hourly billing business model allowed the company to spend just $18,700 on recruiting services—an 81% cost savings of $77,300.00, assuming the low end of the typical agency’s fee range.
Outsourced HR: The Value by the Numbers
By outsourcing their HR activities to Chatfield Global, this heavy equipment distributor was able to do more than just fill roles. They transitioned from a minimal internal HR team (which was previously only handling basic tasks) to having access to a full team of HR professionals across all HR specialty areas, who could assist with strategic initiatives.
If the client had chosen to build an internal HR department consisting of the seven roles needed to replace the Chatfield outsourced team, the cost would have ranged from $660,000 to $770,000 annually, including benefits. For a small to mid-sized company, this kind of investment isn’t feasible—especially when many HR tasks are not performed year-round.
Instead, the company spent an average of $18,000 per month, or $216,000 annually, on Chatfield Global’s outsourced HR services, a 67% savings on the low end. This flexible model allowed them to access expert-level support at a fraction of the cost and scale up or down as their needs evolved.
Closing Summary
Outsourcing to Chatfield Global allowed this strong and growing business to access top-tier HR expertise at a lower cost, freeing them to focus on strategic goals like brand building, culture, and 4th generation succession planning. By leveraging the "Buy, Build, and Borrow" strategy, the company positioned itself for continued success without the overhead of a full-scale internal HR department.
In today’s competitive environment, businesses of all sizes can benefit from outsourcing models that offer access to expert resources while maintaining flexibility in budgeting. Chatfield Global’s partnership with this client is a testament to how the right outsourcing strategy can empower companies to grow and thrive.
What’s to Come
In Part IV, we connect the dots between outsourcing and organizational effectiveness and showcase the organizational effectiveness outcomes our valued client has achieved through outsourcing.
