The human resources department is an essential piece of the puzzle for companies where recruitment choices often have the potential to make or break an organization.
Most larger companies are able to maintain their own in-house HR departments that ensure that processes of sourcing, hiring, training, and continuously assessing new and existing employees run like a well-oiled machine
However, for small to medium sized businesses, which usually don’t have a dedicated HR department, we often find critical HR functions being delegated to other employees with limited knowledge of the correct processes and procedures. The effects that this can have from a functionality perspective can lead to severe inconsistencies, disgruntled employees, not to mention incorrect or inappropriate recruitment choices. Given the high cost of recruitment and training, this is far from the ideal situation.
For smaller businesses, the issue of time management and mounting costs can make the maintenance of an effective HR department extremely challenging. It is for this reason that more and more small businesses are choosing to outsource their HR requirements to external services providers.
Top four reasons to outsource HR:
Most business owners already spend far too much time on non-revenue generating activities. Throw in the complication of learning about recruitment, employment law and screening prospective employees, and you’ll never have to time to focus on your core business again. Outsource this critical function, and you free up a significant amount of time to focus on revenue generating activities, while an expert services provider finds your ideal candidate.
Exposure to bad apples:
Any entrepreneur will tell you that starting a business from the ground up is a gruelling process of blood, sweat and tears. Once you’ve survived the critical start up years and you’re ready to provide employment opportunities, the last thing you need is to hire someone who will be detrimental to the well-being of your business. Therefore, your inbound HR services provider should be able to ensure that every potential candidate will undergo a full employee screening procedure, including their employment history, qualifications, criminal record checks, as well as their level of competency for the position.
Outsourcing HR means that you focus on your core business functions and generate revenue, while a competent outsourced provider uses their resources to screen all potential candidates, and can tell you upfront whether a candidate will require any additional training.
When your company has just been awarded the contract of a lifetime and you need to hit the ground running, you’ll need critical additional resources to help you to achieve this. There’s no time to waste on hit and miss employees. So you’ll need the help of a competent HR team to provide a set of skilled and competent employees, who are serious about the success of your business.
With small to medium business owners often lacking the time, resources, or skillsets to make effective HR hiring decisions, they need to outsource to experts. Instead of offsetting the issues related to ineffective HR, you would be better off cutting through the unnecessary admin and outsourcing your HR needs to expert service providers.