SHARE

Should you outsource your HR functions?

Many organisations, especially small businesses with limited resources, face a huge challenge of managing a wide range of human resource (HR) functions efficiently and cost-effectively.

Some of these include:

• Employee payroll and tax filing

• Employee benefits such as pensions and health insurance coverage

• Compliance with labour legislation

• Maintaining employee records

• Employee training and development

 

By outsourcing their HR functions, businesses can overcome this challenge and benefit in several areas:

Risk management

A business that outsources its HR functions minimises the risk of non-compliance with labour laws, which are subject to regular changes. The outsourcing firm employs HR professionals who constantly stay updated on the latest employment legislation to help their clients avoid penalties arising from failure to remain compliant. Outsourcing firms can also audit company policies and practices to ensure the protection of employers’ and employees’ interests.

 

Cost savings

Overhead costs associated with performing HR services are typically very high. A fully functional HR department requires additional office space and highly trained and experienced HR staff. The outsourcing firm may achieve economies of scale that are unavailable to its individual clients. Businesses that outsource HR functions will therefore be able to enjoy cost savings even if their labour requirements increase with growth.

 

Efficiency

Organisations also improve efficiency and productivity by outsourcing their HR functions. With the outsourcing firm handling routine HR work, the client’s HR staff are free to focus on strategic activities that enhance business value.

 

 

 

 

 

 

 

Stay tuned with us!

Subcribe to our mailing list to get updated with the latest news on Payroll and HR
Name
Invalid Input
Designation
Invalid Input
Company
Invalid Input
Telephone
Invalid Input
Email
Invalid Input
Invalid Input