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HR outsourcing is the practice of hiring a third-party company or firm to manage some of your company’s HR duties or tasks. Some of the HR duties that can be outsourced by your company include recruitment or hiring, background checking, payroll administration, employee welfare management, employee training, and personnel outsourcing (embed link to personnel outsourcing here).

Why should any company consider outsourcing its HR duties? You should consider outsourcing your company’s HR duties if you are faced with the following challenges:

1. When a lot of time is spent on carrying out HR duties or tasks such as the hiring of new employees, managing employees’ welfare and performances etc. at the expense of your company’s core revenue-generating activities.

2. When there is a need to cut the cost of keeping your in-house HR personnel monthly salary and other allowances for carrying out your HR functions.

3. When the in-house HR personnel lack the experience to carry out some specific HR functions such as the replacement of senior management staff or head-hunting for a highly skilled professional.

4. When your HR tasks are handled by employees who have limited knowledge of contemporary HR demands and applicable labour laws.

The following are some of the benefits of Outsourcing your HR services.

1. Reduced HR Cost

A competent and licensed HR firm such as Cen Global can help you reduce your HR costs beyond your imagination. Years of experience have shown that accommodating In-house HR costs can be quite expensive for most small and medium-sized businesses. HR firms have, over time, built systems or competencies that enable them to carry out HR functions efficiently and cost-effectively. It will be more cost-effective for your business to carry out an HR duty such as the hiring of new employees through an experienced HR firm. Also, HR firms can manage your employees’ benefits, welfare, payroll, and performances cost-effectively. Finally, patronizing the training and development services of HR firms saves you the associated cost of procuring expensive training materials or maintaining in-house trainers.

2. Access to Specialized HR Expertise

Unlike in the past where HR duties were purely transactional, today they have become more complex and professional beyond our imaginations. HR tasks such as recruitment or hiring, training and development, payroll administrations, and employee performance monitoring and management now require very highly trained and specialized HR experts or professionals to handle. A high percentage of this highly skilled HR personnel are mostly working in HR firms. You are encouraged to patronize the services of HR firms if you need your HR duties to be handled by experts. HR firms are known to engage only skilled and trained HR experts to handle each category of their services.

3. Improve Brand Image

Outsourcing your HR services can help improve your brand image by ensuring that your company remains compliant with the labour laws of the country. HR firms are better informed about the applicable industry or labour legislation that may affect your brand in the future if not taken care of, on time.

4. Hiring and Retaining Right Fit Talents for your Business

Hiring and retaining the right fit talents for your brand can be challenging as it requires the expertise of highly skilled HR professionals to search for these talents. This challenge can be easily sorted out when you engage the services of a licensed and competent HR firm for your recruitment or hiring needs. Even when hired, you need the services of an HR firm to constantly engage these talents to identify the attractions that can help you retain them for the continuous productivity and profitability of your business.

5. Helps you focus on revenue-generating activities

Outsourcing your HR duties can help you save more time for your key revenue-generating activities. Since HR duties are not the core duty of your business, you should outsource them and concentrate on your core revenue-generating duties.

6. Flexible and Tailored Services

Most HR firms offer flexible HR services that are tailored to meet the needs of companies. So, even if you have an in-house HR employee who handles your HR tasks, you can still outsource some of the HR ask that are outside his or her scope of expertise.

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