6 Reasons Why You Must Try Outsourcing Your HR Functions
Introduction
As a business owner, the challenges of handling human resources (HR) functions are nothing new. From recruiting and hiring to benefits administration and compliance, HR management can be daunting, requiring specialized expertise and time-consuming efforts.
This is where outsourced HR solution comes into play. Hiring a reputable third-party provider like Q2 HR Solutions to handle your needs can save time and resources while improving compliance, scalability, and employee experience.
In this guide, we explore the remarkable advantages of outsourcing and why you should consider it for your HR functions.
Outsourcing and Its Many Benefits
First, what is outsourcing? This business practice refers to delegating services or producing goods to a third-party provider rather than being handled by the company's staff. This approach is usually cost-saving and can impact various functions, such as manufacturing, customer support, and back-office operations.
Outsourcing was first acknowledged in businesses in 1989 and became an imperative aspect of economics in the following decade. This strategy encourages companies to allocate their resources efficiently while promoting the principles of global free-market economies.
So, how is it looking for outsourced HR solutions? Studies show that one or more HR functions are outsourced by 35% of businesses that have less than 1,000 employees. Meanwhile, recruitment and employee training initiatives are the two most frequently outsourced HR functions.
In Deloitte's Global Outsourcing Survey, executives from different industries were asked how their organizations have benefitted from human resources outsourcing services. 72% of the respondents cited that outsourcing has allowed them to focus on crucial business functions, while 55% said they were able to cut costs significantly. Meanwhile, 55% of the respondents claimed that this addressed their capacity issues, while 28% cited that this paved the way for greater global operational scalability.
Given its positive impact, it is easy to see how outsourcing HR functions can make a massive difference for your business. Q2 HR Solutions is happy to walk you through every step and help you make the most of it.
Reasons To Outsource Your Human Resource Functions
Outsourcing your HR functions can be a game-changer, whether you are a startup, a big company, or a multinational enterprise. Here is why you should consider it for your business:
To Gain Expertise
Regardless of your company's size, expecting a single person to manage every aspect of HR is impractical. It requires an expert team to streamline end-to-end processes. However, hiring several HR professionals for every task may not be financially wise if you own a small business.
That said, it is more practical to partner with an outsourced team with experts in each aspect of HR management. You can trust them to bring the skills and knowledge you don't have in-house and won't get by hiring just one person. Plus, you can get this at a lower cost than having multiple hires for every task.
To Take Advantage of Cost-Effective Benefits
Let us face it – you need to offer a comprehensive benefits package to attract top talent. But for small and medium-sized businesses, finding affordable yet competitive options can be a struggle. For this reason, many business owners often resort to DIY solutions, which are more expensive and can negatively impact hiring and retention.
Benefits are the second-largest cost center after salaries, making HR administration outsourcing more crucial. It will help you find and pick the right benefits and assist in managing them, saving you valuable time and reducing costs.
Some of the most important benefits employers offer in the Philippines include:
Health Insurance
Social Insurance
Housing Loan
Paid Time Off
13th Month Pay
Workshops and Training
To Increase Productivity
One of the great things about human resources outsourcing services is that they free up your time to pay attention to more essential business matters. For instance, they expedite the recruitment process. The sooner you fill vacant roles, the more productive your company will be.
To Stay Compliant
With local regulations constantly evolving, it can be challenging to keep up, especially when you already have a lot on your plate. This is especially confusing if you manage a fast-growing company—as you expand, so do your requirements.
That is why having an expert team is so valuable. They can monitor the regulatory landscape, predict what is coming next, and help you stay compliant. Besides, they can help you review and update your hiring procedures as well as your policies on wages, leaves, and working hours, ensuring they are reasonable under the law.
To Improve Employee Relations
As a business owner, you only want what is best for your staff. However, dealing with difficult employees is something you are bound to face at some point. That said, it pays to be prepared for the worst-case scenario. This is where outsourced HR solutions come in handy. When complex issues, like unauthorized absences and performance management problems, crop up, you need someone with experience handling similar situations.
To Discover Constant HR Innovations
Attempting to manage HR tech on your own can result in a mishmash of different systems and programs to handle personnel files, onboarding, training information, and more. Meanwhile, outsourcing your HR needs to a company with an innovative platform can simplify everything by centralizing your data, systems, and process and one secure and accessible place.
Partner With Q2 HR Solutions
If your business needs help to meet the demands of HR functions, it is time to consider hiring an outsourced team from a reliable partner like Q2 HR Solutions. We deeply understand local laws and regulations and best practices in the industry. We know that every company has unique HR needs, so we can tailor their services to your industry, size, culture, and budget, ensuring you get the right support and attention.
Furthermore, we offer high-value and globally recognized platforms for screening, recruitment, and training, among others. On top of that, we can scale our outsourced HR solutions, depending on your needs and growth. Whether you are expanding your operations or entering new markets, we can adapt accordingly.
Conclusion
Outsourcing HR functions can provide many benefits for businesses of all sizes. It frees up valuable time and resources, ensures compliance with local regulations, and, more importantly, allows you to focus on what you do best—growing your core business.
Whether you choose to outsource all HR functions or just certain aspects, partnering with a reputable company like Q2 HR Solutions is essential. With our years of experience and proven record, you can rest easy that you are getting the support you need to succeed. Get in touch with us today to get started!