Give one way that outsourcing HR can boost company growth?
To help you appreciate how outsourcing HR could bring growth to your company, we asked HR managers and business leaders this question for their best insights. From freeing up resources to focus on the core business to getting access to industry-leading HR practices and technologies, there are several ways you could boost the growth of your business by outsourcing HR-specific tasks.
Here are eight ways these leaders boost growth in their company by outsourcing HR:
- Free Up Resources to Focus on the Core Business
- Reduce Overhead and Save Money
- Improve Your Hiring Process
- Direct More Attention to Improve Employee Satisfaction
- Allow Better Planning Toward Company Goals and Mission
- Choose the Level of HR Expertise You Need
- Give Onboarding of New Employees Better Attention
- Get Access to Industry-Leading HR Practices and Technologies
Free Up Resources to Focus on the Core Business
By outsourcing HR, organizations can free up internal resources to focus on core business activities. For example, if organizations outsource HR, they can focus on developing the core product or service. Organizations can also access expertise that might not be available internally. For example, organizations can access international expertise that can help expand the business globally.
To determine whether you should outsource HR, ask yourself whether HR is a core business activity or a support activity. If HR is not a core business activity, then you should consider outsourcing it and investing elsewhere in the business.
Matthew Ramirez, Paraphrase Tool
Reduce Overhead and Save Money
One way that outsourcing HR can boost company growth is by reducing overhead and saving money. On-site HR staff are expensive, especially if you have a small company or one that’s just starting out. When you have your own on-site HR staff, you have to pay for office space, equipment, insurance, and all sorts of other expenses that add up quickly.
And if you’re trying to grow your business, those costs can be crippling—especially if they’re not offset by an increase in revenue. By outsourcing your HR department, you can reduce this overhead by hiring only as many people as you need and making sure they work remotely. This allows you to save money while also keeping costs down so that they don’t grow faster than revenue does.
Shaun Connell, Writing Tips Institute
Improve Your Hiring Process
Outsourcing HR allows you to assess candidates objectively and make better decisions when it comes to selecting the best applicants for your organization. It helps streamline communication between management and employees since it eliminates the need for face-to-face interviews or other paperwork.
Outsourced HR solutions usually include employee screening, online applications/questionnaires, background checks (including drug testing), interview scheduling/conducting, onboarding processes/training programs, benefits management services, etc.
Johannes Larsson, JohannesLarsson.com
Direct More Attention to Improve Employee Satisfaction
Outsourcing helps save on company costs because most of the cost responsibilities towards employees are transferred to the outsourced company. For example, outsourced employees are not entitled to company benefits. They are just compensated for the core business that they were employed for.
The saved resources can then be used to fund other administrative tasks of the company to ensure growth. Another thing is that the human resources is relieved of so many burdens to manage the employees making their HR functions easier. The HR team is therefore to support other growth aspects of the company.
Yongming Song, Imgkits- Photo Editor
Allow Better Planning Toward Company Goals and Mission
Core business strategies involve growing the business. However, with growth comes hectic and time-consuming HR functions. As a result, turnover rates increase since management manages operations and growth.
Companies can outsource work to an independent HR outsourcing (or HRO) agency with capable people who can handle all your human resources demands. HROs are an excellent alternative, especially if owners want to test the waters about the necessity of outsourcing HR work. Outsourcing HR solves this problem by allowing companies to focus on growth and operations. With undivided attention, the management can freely focus on planning and executing growth plans.
Tristan Buenconsejo, TriBu LinkBuilding
Choose the Level of HR Expertise You Need
The HR of an organization should stay updated with the market insights and competition in the field. While in-house HR might perform well the same, outsourced HR has higher connections and networks to remain updated. With outsourcing HR, the company need not worry about keeping up with cutting-edge technology.
They can hire better employees and pay them well to chase the market standards. Another advantage of outsourcing is the ease to replace if the services are non-satisfactory. In this case, if the company is done availing services from that HR, they can easily switch to a new one without much effort. It will help to save money and hire professional and advanced people to finish the market deals.
Agnes Zabawa, Insurance Navy
Give Onboarding of New Employees Better Attention
One way that outsourcing HR can boost company growth is that it can free up time for HR staff to work on other projects. Onboarding new employees does take up time for our HR staff and this time could be used in other areas of HR such as employee personnel issues and meeting the needs of the organization.
Lindsey Hight, Sporting Smiles
Get Access to Industry-Leading HR Practices and Technologies
The reduction in expenses is one way that outsourcing HR can help boost a company’s growth. When a company decides to outsource its human resources department, it may be able to cut costs associated with the salaries of HR employees, benefits, and training. By cutting these costs, the company will save money that can be invested in other parts of the business, ultimately leading to growth.
Increasing a company’s productivity is another way that outsourcing HR can contribute to that company’s growth. When a company decides to outsource its human resources department, the business gains access to industry-leading HR practices and technologies. This can assist the company in improving its operations and streamlining its HR processes. In the long run, this might result in increased growth and profitability.
Hilary Kozak, LivSmooth
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