Should You Be Outsourcing Your Human Resource Management Needs?

Outsourcing HR can save time and money.
Outsourcing HR can save time and money.

Human resource management (HRM) is now a huge industry in its own right. There are thousands of companies offering HRM solutions across the globe to businesses who wish to outsource their HR needs. But, surely this only really applies to the huge corporations and superbrands, doesn’t it? Well, not necessarily. Many small businesses are now finding that outsourcing their HR requirements is not only saving them time and money, it also gives them access to a broader skills and knowledge base while offering higher quality support levels too.
The key question that is often overlooked is when is it right to start outsourcing your HRM?

  • Company size – If you are the one with the onerous task of dealing with your company’s HRM, you might think that outsourcing the work is a great idea, even if your company consists only of you, your wife and your pet Pug! Let’s face it, HR is time consuming and not exactly exciting.

However, if your company employs very few people it’s probably wise to do as much HR yourself as you possibly can. Nevertheless, having a HRM agency that you can call on in emergencies will definitely offer you some piece of mind should anything urgent arise and require expert help. Once you get close to and above 50 employees exploring the possibilities of a dedicated in-house HR team supported by an outsourced agency may be the best way forward for your business.

  • What help are you looking for? – As it is such a huge industry the levels of support can vary greatly, from keeping businesses up to date with the latest legal requirements through to personnel tracking, see here. As well as offering different services, many providers offer different working practices too. Many will offer you a faceless support line that will give you access to a knowledge base that could work well in conjunction with your current in-house set-up.

Alternatively you may feel that your business will be better served by regular visits from a familiar individual who will get to know your staff and business on a much more personal level. Knowing exactly what you require will help you find the right management team much more efficiently than broadly searching for general HRM. It will also allow you to work out exactly how much the service is going to cost…

  • Cost – Probably one of the most important factors to consider is how much outsourcing your HRM will cost your company. As mentioned above, knowing what service you require will get you started on working out what your needs are likely to cost you. Be sure to factor in the time you will be saving the staff member who currently deals with your HRM.

The key thing to keeping HRM to a minimum is to look after your employees. Lowering staff turnover will not only save you money on HRM, it will also give you a happier, more productive workforce and help keep your business moving in the right direction.
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