Outsourcing is defined as the process when an organisation or a company instructs a team of individuals to take care of the human resource department of the organisation as such jobs might be tedious and complex to normal employees.
Outsourcing has been around for years. It originated from the manufacturing industry, where organisations would contract other factories to produce goods or parts. Basically, they outsourced those functions for which they had no competency internally.
This strategy has since been adopted in the service industry largely due to the technological advancements in telecommunications. Businesses can now leverage experts in the field of digital marketing, accounting, graphic design, and human resources management (to name a few) through outsourcing.
Why Use an Outsourced H.R Consultant
You might be asking yourself why you need an outsourced consultant to manage your human resources.
Well, when your business is growing, so does your responsibilities and as a small to medium scale business owner, you might not be in a position to hire a full-time person.
An outsourced consultant does not typically work from a client location but is able to schedule meeting regularly in person or via zoom or skype. That’s the power of technology.
Furthermore, an outsourced human resources consultant helps to reduce the workload from business owners allowing them to focus on the core aspects of the business.
If your plan is to grow your business, then consider outsourcing.
We have listed below some of the key benefits of using an outsourced human resources consultant, especially for small to medium businesses.
The benefits of having an outsourced human resources consultant
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Cost savings
A fully functional human resources department requires additional office space and highly trained and experienced HR staff. Many small businesses find it more cost-effective to outsource HR functions rather than expand to a larger location to meet the space needs of another department.
Hiring someone goes beyond raising their monthly salary. Statistics show that the added annual cost for a new position can equal up to, or more than 150% of the actual pay.
Take into consideration the cost of benefits such as medical aid, funeral, pension, and other benefits required to retain a human resources employee.
However, with outsourcing, you need not worry about additional costs because usually the fees are agreed upon and are cost-effective.
No need for sick leave pay etc.
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Efficiency
Maintaining an efficient and productive workplace is critical. Outsourcing an HR consultant helps the employees, supervisors, and managers focus less on the paperwork and rather helps them to be more focused and concentrated on how to improve the quality, efficiency and effectiveness of the workforce.
Just like an internal HR manager, an outsourced consultant is available on call to handle any urgent issues.
Consider the consultant to be an employee working at another branch.
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Strategy
The most valuable resources that any business has are its employees and as your business grows, you will need to recruit and hire the best talent in order to stay ahead of the competition.
Remember that your employees are also human. They have issues that could be affecting their work and having a human resources consultant will help alleviate the burden of dealing with HR-related issues on a daily basis.
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Risk management
Employment and labor laws change regularly, and it can be difficult for employers to remain up-to-date on regulations that affect the workplace.
In order to avoid any potential human resources related to lawsuits, there is a need to have an expert at your disposal. An outsourced HR consultant will ensure that your company and employees are in line with labour regulations regarding issues like sick leave, days off, remuneration, and disciplinary action procedures.
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Employee Development
Outsourcing HR functions help businesses manage employee performance and development. An outsourced consultant can implement performance management plans to ensure employees comply with company policies and procedures and successfully meet business goals.
Outsourcing firms periodically monitor employee performance and report findings to management. This reduces the workload of managers by minimizing the number of administrative responsibilities they must focus on.
Conclusion
If you plan to grow your business and cut costs, then consider using an outsourced human resources consultant that can help you with;
- Recruiting
- Training
- Disciplinary Hearings
- Performance reviews
- Payroll management.
Contact us today to get started.
