7 Telltale Signs That Say It’s Time To Outsource Your Human Resources

Introduction

The human resources (HR) department is central to the success of any organization. It significantly influences a company’s talent acquisition and recruitment, employee management, staff training, and succession planning, among other functions involving the workforce. This makes it a key partner in helping a company achieve its organizational goals.

Thus, if you’re having problems with your HR department, be it a lack of specialized expertise or enough personnel, something must be done as soon as possible to solve them. Otherwise, your company’s other processes and sectors may be affected.

Fortunately, there are now many HR outsourcing companies businesses can turn to for support. Depending on your needs, they can either manage your entire HR team or specific functions only.

Not sure if it’s time for you to outsource your human resource management? Read this article to find out!

Outsource vs In-House HR: What’s the Difference?  

In-house HR means having your own internal HR team handling the company’s HR functions. The staff under such a team are direct employees of your business. In contrast, with outsourced HR, you work with a third-party service provider to manage the entire HR department or select functions only.  

HR functions commonly delegated to HR outsourcing firms include recruitment, payroll management, employee training, and performance management.

Top Reasons Why Companies Outsource HR

Numerous businesses are outsourcing various HR functions to third-party service providers. In fact, according to 78% of the respondents in this Deloitte survey, their HR service provider either met or even went beyond objectives related to cost. Thus, you have no reason to doubt using this approach to manage your company’s HR operations.

Below, you’ll find the top reasons why organizations choose to outsource their HR:

Lack of Legal Knowledge

A lack of legal knowledge regarding hiring rules, labor laws, and tax requirements exposes your company to legal liabilities. Aside from penalties, this can damage your brand’s reputation, leading to lesser profits and higher employee turnover rates, among other unfortunate ramifications.

To avoid this, organizations hire third-party HR personnel who are trained and experienced in the complex aspects of HR and company law. In this way, they can ensure that they are legally compliant and have no reason to fear being penalized for any violations.

Need To Save Time and Money

How can partnering with HR outsourcing companies save your business time? Firstly, third-party HR service providers require minimal onboarding and training. Moreover, they practice streamlined processes, allowing them to accomplish tasks with higher levels of efficiency and accuracy.

On the other hand, outsourcing HR functions can be a very cost-effective approach. Why? The costs associated with HR outsourcing can be lower than the costs of maintaining an in-house HR department, which includes hiring, salaries, benefits, and training.

Shift Focus to Core Business

Do you need help achieving business growth? This may be because your staff doesn’t have the time and energy to focus on core business initiatives because of their workload.  

By outsourcing multiple HR responsibilities, your workforce can redirect their time, energy, and efforts to more critical business functions, such as product development, market expansion, quality management, and customer service. This paves the way for more growth opportunities to happen within your organization.

Lack of Efficient Recruitment Process

Is your company finding it challenging to fill up vacancies? Well, you’re not alone. According to a study from the European Journal of Training and Development, recruitment is one of the most outsourced HR functions.

This is no longer surprising. Many outsourced HR personnel are experts when it comes to establishing streamlined hiring processes through the utilization of software tools, allowing them to automate various recruitment functions. This results in more effective recruitment efforts, enabling the company to attract and retain the right people.

Limited Internal Resources

A core reason for outsourcing HR personnel is limited internal resources. If you don’t have enough people handling various HR functions, particularly time-consuming administrative tasks, such as payroll management, this is a sure sign you need to consider outsourcing!

While you may hire more staff, it will be more cost-effective if you tap into the expertise of HR consulting firms. Their personnel do not require in-depth training and onboarding. Furthermore, you can benefit from their expertise regarding complex HR operations, such as executive recruitment and employee training and development.

Insufficient HR Technology

Advanced HR technology is a must-have for all businesses, especially since there are numerous things to manage in HR. Documents, employee files, training resources, timekeeping, and payroll data are some materials that need overseeing.  Consequently, your processes will most likely be time-consuming and inaccurate if you’re not utilizing the latest HR technology.

Partnering with HR outsourcing companies gives you access to the latest HR software tools. Doing so will ensure that your systems and processes are organized, efficient, and precise. As a result, your organization can save more time and resources.

Demand To Grow Faster

Sometimes, companies may undergo rapid growth. This may be through obtaining more clients, opening branches, or expanding the business in other countries. While this is good news, their HR team may need help keeping up with all these developments.

For this reason, many of them opt to get help from third-party service providers. Many HR outsourcing companies like Q2 HR Solutions can scale up or scale down their offered services depending on the needs of their clients.

Take Your Business to the Next Level With Q2 HR Solutions’ Outsourcing Services

If your company faces any of the dilemmas discussed above, consider it a telltale sign to get HR outsourcing. Q2 HR Solutions is a leading HR consulting firm in the Philippines that has helped multiple organizations from various industries with their HR functions.

One key thing that makes us stand out among other firms is our ability and effort to tailor our services to our client’s requirements. This comes from taking the time to understand their needs, which allows us to offer customized HR outsourcing services. Hence, you can have peace of mind that you’re getting the proper support and reinforcement to achieve your desired outcomes.

Schedule a meeting with us today to learn more about what we can do for you. We look forward to hearing from you!