A great human resources team is a huge asset as you build your company. For a small business, it can be hard to find room in the budget for a dedicated HR worker. That’s when outsourcing can be a great solution — it gives you most of the benefits of in-house HR professionals at a considerably lower expense. Let’s have a look at some of the benefits of HR outsourcing.
Benefits Of HR Outsourcing
Saving Time on HR Duties
As a small business owner, you have plenty of tasks to fill your day. HR responsibilities can take up a large portion of your time, especially when you’re trying to hire an employee. If you’re spending hours each day replying to job postings and processing applications, outsourcing HR functions can help. An outside agency takes all of those tasks off your plate, so you can focus on work that brings in revenue.
Although it can seem counter-intuitive, outsourcing can help your company cut costs on HR activities. Consider the money you spend on each staff member — you must pay for taxes, insurance, vacation time, office furniture and supplies. By outsourcing this work to a remote employee, you can cut these overhead costs immediately. Plus, since you can use outsourced HR services on demand, you only need to pay when there’s work to be done. For a small business with only a few employees, this can add up to a big savings.
When you outsource to an HR agency, you get access to a full team of educated, experienced professionals. They can complete administrative paperwork quickly and efficiently. They’re up-to-date on India’s labor laws and know how to keep your company compliant. If you want to start an HR initiative, these agencies can get it up and running quickly. Most importantly, they already have the systems and technologies in place to tackle all of your small business HR tasks. By outsourcing, you can benefit from all of this experience and service — something that would be impossible to recreate in-house without breaking the budget.
Access to Top Talent
By 2020, experts expect India’s workforce to be one of the biggest in the world. However, only a small percentage of those workers are formally trained. As an employer, this means that you may need to wade through a large pool of candidates to find people who are qualified for your jobs.
That’s where an outside agency can offer you the biggest benefits. Since they specialize in successful HR functions, these firms are experts in finding talented workers. They know where to post your advertisements and how to recruit. Even better, they can screen candidates for you to ensure that only the best people make it through to the interview stage. As you build your business, these professionals can help you design a recruitment strategy that matches your goals. This insider knowledge helps you find great workers faster, which gives you an advantage over competitors.
If you’ve never done it before, HR outsourcing for small business can seem like an unnecessary expense — especially if you’ve been handling it alone. For many small companies, however, the on-demand access to HR expertise and the long-term savings in time and money are well worth the occasional outsourcing fee.