HR for Small Businesses: To Outsource or Not to Outsource

Posted on Jun 28 2016 - 12:16am by Expert-Zine

HR SolutionsA majority of small to mid-sized businesses know the annoyance of allotting time for activities that don’t generate profit. From managing human resources to compensation and benefits, managers typically spend a substantial amount of their daily time going about these time-consuming, but necessary activities.

For a lot of businesses, the answer is to outsource these HR activities to free up their time and focus on crucial business tasks. However, how can you know if outsourcing HR functions is right for your business? When determining the answer, consider the following.

The Size of Your Business

In general, organisations that have more than 40 to 50 employees require in-house HR support, while businesses with less than 40 employees usually outsource their HR tasks. The services they avail will also differ mainly due to the number of employees they have.

The Services Your Business Require

The work performed by outsourced HR consultants differs greatly based on the nature of a business and the employees’ functions within the business. In general, the most commonly outsourced services include payroll, benefits, and legal services.

Basically, most organisations outsource their HR to save on costs and so that they can make use of specific knowledge and skills, which in turn offers them more effective and efficient support than they can get from someone in-house, according to one of the top HR consulting firms in Brisbane. The costs saved will come from the organisation either doing away with an in-house HR person or by allowing the person assigned to handle HR functions the chance to focus on tasks that actually make money for the business.

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The Type of Provider You Need

Are you looking for a ‘face’ that will know your business inside and out, the culture and your staff? Or someone flexible with their services, on call, or can function as though your business actually has an HR team? Alternatively, do you just need someone to support your HR efforts?

Take the aforementioned considerations into careful account so you can determine if it makes for your business to outsource your HR activities. The bottom line is that if you prioritise employee engagement, you make certain that you won’t be bothered with employee turnovers and an ineffective or unproductive team. Rather, you get highly productive and enthusiastic employees, which will allow you to maintain your competitiveness and relevance in your industry.