Why Employers Need To Outsource HR Services

Ernest Wanyonyi | 16th March 2020

Why Employers Need To Outsource HR Services

Why Employers Need To Outsource HR Services

Ernest Wanyonyi | 16th March 2020


Human resources outsourcing entails the delegation of one or more human resources service(s) to an external provider, who owns and manages the services based on the pre-determined performance conditions.


This has become a common function globally and therefore organization at some point regardless of their size find themselves having to replace or expand their operations by outsourcing HR functions.


Just like with every other business decision, the decision to outsource an HR function cannot be made without considering the contingent factors. The organization must consider the economic, social and legal landscape to operate in.


The strategic objective and financial plans of the organization strongly define the directions an organization desires to take. Most of the firms we have worked with in the past have contacted us to do psychometric tests or training and more so coaching. Others have outsourced their entire HR function to our organization which to their feedback it has streamlined their functions and reduced their cost up to 70%.


Outsourcing decisions tend to be complex but these are the clear facts and reasons why Employers need to outsource on Emploi.co


1. Cost-Effectiveness

As we all know that the current business environment is cost-conscious and competitive and therefore organizations are subjected to cost reduction measures. Outsourcing helps reduce the cost of maintaining non-revenue generating back-office expenses that are not a company’s core competency. A fully functional in-house HR department requires additional space and highly trained and experienced HR professionals.

Many SMEs find it more cost-effective to outsource HR functions rather than expand a larger location to meet the space needs of another department. Furthermore, outsourcing costs are variable and can be reduced when business needs warrant.

Again based on the size of your organization, you may not need dedicated HR support and the provider can share this cost amongst other clients.


2. Efficiency

Maintaining an efficient and productive workplace is absolute! Outsourcing HR functions create greater efficiency within human resource systems. Advanced HR technology utilized by outsourcing providers helps streamline important HR functions such as payroll, benefits administration, and compliance management.

This helps companies focus more time dedicated to improving the efficiency and effectiveness of the workforce on core operating functions.


3. Employee Development

Organizational development (OD) is essential to support both employee and company growth. Not all companies are experts at performing or creating OD and performance management systems.

Outsourcing OD functions may help businesses manage employee performance and development. The same is true with training. While many companies have libraries of training content, sometimes it makes sense to outsource training for course offerings not maintained internally (project management, leadership, etc.).

Outsourcing some or all training allows for a fresh approach to content, it may provide learning that is not housed internally. Most of the quality and time to deliver is better through a qualified outsourced training provider than can be done internally.


4. Enhances Legal compliance

Organizations grow over time hence the need for mergers, acquisitions, and expansions. In light of this, organizations need structures and HR processes that are capable of blending corporate cultures, handling layoffs and consolidation of employees. Outsourcing HR functions would appeal to an organization during a merger or an acquisition because specialized personnel would be superfluous after the completion of the project. Organizations must also comply with various legislations and regulations. An external HR expert provides guidance that enables an organization to set policies and procedures on health care, overtime compensation, pension reforms, and benefits eligibility. While this can be carried out internally, keeping up with the regulations is demanding. It may call for an increase in the number of personnel working in the HR department as well as the resources devoted to the department. An organization is better off hiring a subject matter expert to handle a matter of compliance.


Outsourcing through Emploi.co renders you with the above alternatives and therefore considering the market trend we do offer the best and at minimum charges.


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