When a company is small and manpower is limited, owners believe that everything can be handled on their own including HR tasks. There is a common belie,f that the role of an HR is just to prepare salaries and keep a record of leaves taken by the employees. But, the job of an HR professional involves a lot more than this, such as managing compensations, ensuring legal compliance, providing training, etc. And when your business starts growing, things can become even more difficult to handle the issues that will arise in future. That’s where the role of an outsourced HR partner can be especially advantageous. Today, in this article, we’ll discuss useful information about outside HR outsourcing companies along with six revealing indicators to watch for.
What is HR Services Outsourcing?
Outsourcing is a term that is mainly used for a business practice in which a company will hire a third-party agency to perform certain business-related tasks such as marketing, development, consulting, and HR & payroll. HR outsourcing services are provided by professionals having experience in the field to help reduce the workload, stress and risk that can happen from employee relations issues, wage and hour disputes, and regulatory compliance.
When you choose to work with a professional HR business process outsourcing agency, you can be sure that, you will have the support of an external professional that will handle as much or as little as you’d like. These agencies offer flexible working models, which means you can hire on a dedicated basis or hourly basis, outsource complete HR functions or a few specific ones, etc. Either way, you’ll get proactive support from a specially-trained expert.
Following are some signs that you need the support of an HR outsourcing services agency:
Your team is overburdened with other tasks –
For a small business, where most of the tasks are handled by core team members, it is very common for them to be overburdened with important business management tasks. Additionally, they may also lack the tools, technologies and skills to handle the role of an HR professional. When they are provided with the additional duties of human resources, things can become tough and many business areas can end up suffering too. Choosing to outsource HR functions to a professional can save you a great deal of time and money. It is smart that complex tasks and business roles are best left to skilled professionals.
You’re worried about staff turnover –
Every small business aims to grow with more sales and team members. While it is very common for businesses to have some turnover of staff, things must be taken seriously when you start to notice a mass exodus. In such cases, you must know the reason behind this. It is commonly noticed that, turnover of staff happens due to poor management of HR functions, which often leads to dissatisfied workers and complaints from team members. Of course, you can conduct regular hiring, but again this is also a time-consuming process, which also needs a lot of time and investment. This can hurt your business in the long term when you lose institutional knowledge and have to start from scratch.
Your business is in hyper-growth mode –
If you recently launched a growth campaign and noticed that it worked too, your team and staff members may be struggling to keep up with the additional workload. Not just your team will need to spend more time on handling clients as well as managing the growth plans, but they will be also required to spend more time on administrative and HR tasks. When such a situation occurs, it’s smart to get additional support from an HR outsourcing services agency. The agency will take over the additional workload of HR functions and also handle pressing employee issues from your plate so that you can concentrate on other important issues. While it is suggested to hire an in-house HR manager to handle the role, but depending on the size of your organization, outsourcing to an agency can be also a smart and cost-effective move.
You’re losing your business –
Outsourcing HR functions to an outdoor agency isn’t just a smart choice when your business is growing, it can also turn out to be a strategic move when you start to notice a downfall in your business. When you have an in-house team of HR professionals who are responsible for managing HR functions, you might find the team left with no work due to the reduced team size. In such conditions, your goal should be to save money by engaging a qualified HR partner to provide the select services that you need.
Which HR tasks can be outsourced?
While HR outsourcing is a common and growing trend these days, but not many businesses are clear about the particular HR functions that can be outsourced to third-party agencies. The fact is that you can either choose to outsource all of your HR needs or opt for partial outsourcing of specific tasks, depending upon your specific needs. Following are some commonly outsourced HR functions:
- Employee Administration – Documents related to employee records from onboarding to employee data updates.
- Compensation & Benefits – Worker salaries and other financial or comparable benefits.
- Talent Acquisition – Searching for talented and suitable people for open positions.
- Performance Management – providing training and performance reviews for better worker performance.
- Employee Engagement – Keeping your workers engaged and feel like a part of the organization, instead of employees.
- Payroll Management – Making payments to team members on time along with managing taxes and with holdings.
Final Words
Regardless of the size of your business and the growth plans, you have on your plate, outsourcing the HR functions can always be a smart move for reducing overhead charges, paying the team on time and keeping them motivated. The role of an HR goes far beyond just preparing salaries and organizing company events, they’re responsible for the overall business growth so it is important to take this function seriously and only engage with a specialist and experienced professional for the specific role, instead of handling it on your own.
