4 Signs It’s Time to Consider HR Outsourcing Services
What are the most evident signs that it’s time for a business to consider HR outsourcing services?
- Sudden and rapid growth
- Failure to respond to changes
- Lack of monetary resources
- Constantly missing deadlines
The human resources department is responsible for a multitude of tasks that are critical to any workforce. HR work involves tasks that have little to no room for error. If a mistake is made, it usually hurts the business or causes trouble with the law which is why many prefer to use HR outsourcing services.
HR services overseas can also be difficult to maintain or operate. It’s mainly because of the lack of knowledge of local regulations or laws, as well as different ways of managing the business altogether. Examples of the tasks that the HR department does on a daily basis include finding prospective employees, training new hires, and assessing the performance of current ones. If a company works with unionized employees, the HR department acts as a liaison between both parties. On top of all this, an HR department oversees the payroll and handles most, if not all, employee concerns and issues. In short, they are responsible for keeping all employees – new or old – happy and satisfied.
These tasks, though seemingly simple, can become extremely difficult. When given to several employees who aren’t experts in the field, results are often inconsistent or chaotic at worst. During these times when in-house HR can’t seem to get the job done, it is best to consider other options like HR outsourcing services. There are many tell-tale signs that indicate it’s time to hire outside help and below are a few.
1. Rapid Growth
A rapidly growing business is a successful one, but don’t be so quick to celebrate. While there’re many reasons to be excited and happy, there are also reasons to worry. Growth doesn’t only mean success, it also denotes the need for more employees. And a bigger and better group of HR professionals is needed to hire and train new employees.
If a company’s growth is way too sudden, its own HR department may not be able to adjust. They may be overwhelmed and get lost under all the paperwork and documents – something that isn’t ideal if continued success is desired.
In order to counter this, it is best to employ the assistance of a trusted and reputable agency that offers HR outsourcing services to ensure that the company’s growth continues.
2. Failure to Respond to Changes
Labor law is one of the most important things to always consider when it comes to operating a business. HR services can be difficult to operate, especially in foreign locations as labor laws can be different depending on how things are done and managed.
With that said, labor laws can also subject a company to change; and if there are companies that can’t respond accordingly, there are bound to be consequences up ahead.
3. Lack of Monetary Resources
Cost reduction is the most common reason companies use HR outsourcing services. When the cost of hiring a new employee is too high, outsourcing is often the best and only solution.
It may appear the opposite at first glance but one has to look beyond the cost of monthly salaries in order to see the benefits of outsourcing. Employees, on top of their monthly wages, need to be given insurance, paid leaves, and other government-sanctioned benefits. Include in this the cost of tools and training that an employee needs to do their job and the expenses start to balloon.
Compare this to outsourced employees who will be the responsibility of a third-party agency and things start to appear clearer. Everything – from the benefits to the training costs – will be shouldered by the agency and the company only has to pay for the cost of services, which is significantly lower than hiring and training new employees.
4. Constantly Missing Deadlines
Having plenty of work is every company’s dreams because most of the time it leads to more profits and exponential growth. However, this isn’t the case if the work is too much that it buries the employees and prevents them from completing any tasks.
Constantly missing deadlines isn’t a sign of incompetent employees – although it can be. More often than not it means that there is a lack of employees. Since the people with the right knowledge and expertise are busy doing menial tasks, they have no time to get actual work done. It is also possible for this to work the other way around meaning that the company itself is always late on giving out paychecks to its employees.
Whether it’s someone looking in or someone from the inside looking at the company, always being late and missing deadlines isn’t a good look. It’s best to hire outsourcing services to ensure the company works like a well-oiled machine and finishes all its goals.
The need for HR outsourcing services steadily increases over time, but that doesn’t mean that everyone can and will benefit from it. The decision to avail of such services should still be according to a company’s needs and financial capabilities.
To learn more about how an HR service provider can support your unique situation get in touch to talk to one of our experienced consultants.