The costs of an employment relationship for the firm are not limited to wages. when the firm hires a worker it must spend resources on the recruitment process (for instance on newspaper advertisements, interviews, and contracts) and in training those workers. once there is an established ongoing relationship there are costs of keeping the payroll (e.g. producing payslips), evaluating workers, and covering any nonwage benefit such as pensions, insurance, vacations, sick days, etc. even though Caymanians are obtaining degrees, wouldn’t it be wiser for a company to outsource certain aspects of their business for profit maximization rather than hire Caymanians?

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There are a number of factors to consider when making decisions about whether or not to out ... View the full answer