HR is a key aspect of any organisation, from performance management, learning and development and employee relations, to recruiting and managing payroll. Although HR is extremely important, we understand that not all organisations have the capability or resources to have their own HR department.
This is where outsourced comes in. HR outsourcing involves using an external provider to manage some or all of your HR requirements and tasks. It can reap many benefits for your business.
It saves money
It can be extremely expensive to hire and build a team of in-house HR specialists, as small to medium-size businesses can easily spend hundreds of thousands of dollars on HR staff. Outsourcing your HR function can save you a substantial amount of money and allow you to gain access to HR expertise when you need it, without incurring the heavy overhead costs.
Reduces HR and employment compliance risks.
Employment legislation and regulations are constantly changing and becoming increasingly complex. By outsourcing HR, you can put your trust in people who are professionals in the industry, know when legislation changes and can assist you in minimising exposure to legal risk.
Better employee benefits
Working with an outsourced HR provider can provide you with access to better benefits and perks due to economies of scale that as a singular small business you can’t attain.
Increase employee wellbeing
The right HR outsourcing firm will assist you create appropriate policies and programs to take care of your employee’s needs.
Outsourcing your HR function means that you will be working with impartial, neutral individuals who can look at your problems or areas of need from a holistic angle. Sometimes an object view on a situation can be really beneficial rather than those personally involved trying to work it out.
Can help you build your own HR infrastructure
You can utilise the expertise and experience of outsourced HR firms to build and manage a complete infrastructure of processes, policies and management tools.
Receive higher level expertise
Generally a solid HR firm like CIRCLE HR, will have advisors who are far more highly qualified than people you can employ, and can afford to have as a full-time employee. Additionally, they have worked in your industry, have strong experience and have generally seen your situation many times before. This all leads to your having a strong advisor on hand to assist you at any time.
Overall, outsourcing your HR function can prove beneficial for a variety of reasons and is recommended for organisations from 2 employees to 500!
Important Note: These articles have been prepared for general circulation and are circulated for general informational purposes only; these articles should not be regarded as business or investment advice. The articles represent the views of the writers and are subject to change without notice. Additionally, while every care has been taken in the preparation of the articles no representation or warranty as to accuracy or completeness of any statement is given. An individual or organisation should, before any business or investment decision is made, consider the appropriateness of the information in this document, and seek professional advice, having regard to objectives, situation and needs. This document is solely for the use of the party to whom it is provided.