If you run your own business, you probably rely heavily on your employees who you have put in place to help you with the day-to-day running of the company and hopefully make more money. This function can’t be run without HR to manage the hiring and firing as well as ironing out any issues as you go along. You can run an HR department internally but there are some excellent reasons to outsource your HR instead.
Cost
It can be more cost-effective to outsource your HR department, especially if you are running a small business or you have just started up and can’t afford or justify the cost of an HR department yet. It may be that you don’t have enough work to keep an HR person busy all the time and you also need someone else who can step in to cover holidays and sickness. It can be a lot cheaper and more effective to use outsourced HR such as gnapartners.com who can give you the time you need for your company HR to run smoothly without having to pay a full-time person if you don’t really need one yet.
They Have Better Skills
Unless you are running an HR company yourself, the chances are outsourcing your HR department will mean that you have access to better skills than you may have yourself. If recruitment, training, and people management are not your forte, it can be a headache to have to get involved with these things yourself. It can be far better to let the HR professionals get on with these things as this will allow you to get on with the things you are good at, such as running your company.
Legalities
There is a lot of red tape to cut through when it comes to employment law, and falling foul of it can be a costly and time-consuming business, especially if a disgruntled ex-employee decides to take you to court. To add to your misery, employment law changes frequently and things you may have been able to do in the past may no longer be appropriate in the future. Keeping on top of all this is a difficult task when you are trying to run your own business. It can be far better to leave this to the HR experts who know the inner workings of employment law to make sure you don’t get on the wrong side of it.
It Improves the Recruitment Process
If you are trying to recruit employees by yourself, you could be faced with an uphill battle. It may be that you don’t have the right contacts and resources to hire the right people without outside help. It may be that you don’t have time to run recruitment days or even interviews. HR specialists are experts in hiring and know what questions to ask potential candidates and when to ask these questions. They understand psychometric testing and how to use it, they have a multitude of contacts they can call on to find them the right candidates, and they have the time to dedicate to doing so. Your recruitment and onboarding process will run seamlessly with the right HR team on board, and you will be able to get the right people in the right positions. It is estimated that getting the recruit process wrong can cost up to 12 months’ salary for each employee you hire. With that in mind, can you afford not to outsource your HR?
It Improves Competition for Small Businesses
It can be difficult for small and large businesses to compete on a level playing field. Small businesses have a lot less money than big conglomerates, but the overheads can still be high, and it is a lot harder to attract good candidates to your company as easily as large companies can. Outsourcing your HR department can be a good way of creating a level playing field and going head-to-head with large companies for the best and most motivated staff.
Troubleshooting
Nobody likes to be seen as the ‘bad guy’ and troubleshooting or sorting out employee problems can take up a lot of time and become quite draining. Being able to outsource HR means that there is someone else whose problem it is to deal with the problems. This can free up a lot of time and energy for you to do other things. It is also good for your employees who have a more impartial line of communication for things such as complaining about the behavior of another member of staff or a manager. This is a win/win situation in which the role of the ‘bad guy’ can fall to someone else.
Reorganization
Most companies will go through structural changes and reorganization at some point, and this can be a difficult process. Outsourcing your HR means that you can have someone else cast their eye over your business and advise you when and how to restructure. This can save you a lot of time, effort, and money. It may be that redundancies need to be made or people need to be fired because of this and you will want this done by an expert in employment law and contracts to oversee this for you to make sure you do not make mistakes that you could be taken to court for. It may be that you don’t need to do as much restructuring as you thought you did, and an outsourced HR company will be able to advise you on this too.
There are many reasons why outsourcing your HR makes good business sense, especially if you are a small company or have only just set up. Making sure that the right people are in the right place at the right time is imperative to any business so make sure you stay on top of your HR function by outsourcing when you need to. You will be glad that you did as it will save you a lot of time and money.
