6 Signs That Say It’s Time to Outsource Your Business HR

When a company is really small, you as a business owner believe that you can run everything yourself, even HR tasks, knowing that you are no expert at handling payroll, compensation & benefits, legal compliance, training & development, etc. But when your business starts experiencing growth, it may reach a point where it’s time to outsource your business HR.

Let’s agree on the fact that you cannot possibly do everything by yourself. Sometimes just admitting to yourself that you can’t be everywhere, doing everything may set the course for future actions. And that could be bringing in experienced HR consultants, who could take some weight off your shoulders so you can focus on what you do best – building your company’s bottom line. Here are six signs that indicate it’s time to outsource your business HR.

6 Signs That Indicate You Should Outsource Your Business HR 

You Find Yourself Managing the People Part of the Business Most of Your Time

If you find yourself spending most of the time sorting employee conflicts, improving their morale, training, mentoring and hiring people, then these responsibilities are getting in the way of all other things you need to focus on to build your business. This is the topmost sign that you need an HR person to handle the people part of your business so you can get back to running your business.

You’re Googling Employment Laws

Employment laws change from time to time. It’s difficult for you to keep track of the changes. You cannot be spending time googling the employment laws every now and then. An experienced HR consultant knows the most common employment laws and can easily guide your company through it.

You’re Not Quick to Respond to Changes

Today’s businesses are nimble and quick to respond to change. If an opportunity comes your way, you need to be ready to start hiring on the word “go”. Otherwise, you stand to lose the opportunity to your competitors. HR outsourcing helps your business stays flexible to hire as and when required in response to a new business opportunity.

HR Task Accountability is Missing

If you don’t have a designated HR personnel and all your HR functions are distributed among your managers or department heads, the task accountability is simply lost in the shuffle. There is no proper channel of communication. Your employees may not know where to take their HR issues and your managers may not know if the information they pass on, is correct.

When you outsource your HR functions, the managers and department heads can take care of their work responsibilities without worrying about HR responsibilities.

You Need to Contain Costs

Outsourcing is a cost as you need to make a huge investment. But did you know that outsourcing actually saves you money in many ways?

When you outsource your HR responsibilities to competent HR consultants, you gain expertise without having to train anybody. You also get to use their different types of HR services which may include time-consuming HR services like payroll. Moreover, outsourcing HR responsibilities gives you time to devote to core business functions. The final result of which is a healthier bottom line.

Poor Employee Engagement

Big companies invest substantial resources into enhancing their employees’ overall experience. However, small companies don’t have the resources nor the knowledge to provide a good employee experience. That’s where an HR consultant may help. When you outsource your HR responsibilities, you can:

  • Offer your employees competitive compensation and benefits
  • Implement HR technology
  • Offer training and give employees access to various development programs

All these help in boosting employee engagement and reducing turnover by creating a desirable work culture.

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