6 signs that you need to outsource human resources

I think we can all agree that Human Resources form a critical part of a company. Their responsibilities are vast, and often time-consuming. From taking care of the employee payroll to handling the training and development of employees, HR employees are usually overwhelmed with work. Unless you are a big corporation with enough resources to manage a proper HR department that can take care of everything for you, chances are you are struggling to handle all the HR responsibilities. Small businesses usually manage with either no HR employees by distributing their duties to their other employees or hiring one or two HR employees. But this can lead to various problems of its own.
Outsourcing your HR services to a reliable offshore services provider is an efficient alternative to hiring in-house HR employees. If you feel your company is struggling with HR services, you might want to consider this option. It allows you to streamline your internal processes. If you are still unsure whether you should be taking this step, here are six signs that you need to outsource human resources.

1. You are spending most of your time on HR.

   As we have already said, HR tasks can take up a lot of time, especially if you aren’t an expert in the field. If you have a small business, you are probably handling the HR problems yourselves to save valuable resources. The more you do yourself, the fewer employees you need to hire. But as an owner, your job is to focus on the tasks that generate revenue. Every hour spent tackling HR issues is time that you are not focusing on growing your business. Cutting costs at the expense of company growth is ill-advised. Since offshoring doesn’t require you to spend too much to hire employees, you can both cut down the cost and grow your company. By outsourcing HR, you are hiring skilled professionals for the jobs as well as devoting your time to high-value tasks.

2. You want to scale your business.

   Scaling means hiring new employees. Recruitment and hiring is a laborious process that requires time, attention, and a lot of efforts. Scaling would require you to employ many employees at the same time, and that can be challenging if your HR employees aren’t skilled at it. Efficient hiring is needed to make scaling successful. Not only do you need to find the right employees who can fit in your company, but you also need to hire them at the earliest. That requires a proper process in place and skilled hiring staff. Your best option is to outsource the company’s recruiting. With offshoring, you can hire dedicated HR employees who are adept at hiring at a low cost. Your remote team can handle the hiring aspect of scaling your business effectively and quickly while you can focus on your clients and product development.

3. You want to cut down costs.

   Every small business wants to save every penny they can. Budget restraints compel them to be smart with their expenses. Offshoring is one such way. It allows you to hire offshore HR employees at a considerably lesser cost compared to local HR employees. But in no way do you compromise on quality. You get access to some of the most talented and skilled individuals. Along with that, you won’t have to pay for any employee benefits, IT infrastructure, office space, and other overheads. So if you are looking to save money, offshoring your HR services is one way.

4. You are not able to keep up with the rules and regulations.

   There are certain tasks and processes in HR that require compliance with specific government and federal laws. Failure to do so can put your company at risk of penalties and audits. It’s a task in itself to ensure that your company is complying with these rules, what is more, these rules and regulations keep changing. So your employees need to be on top of these changes and pay close attention when working on such tasks. But if they lack in this area, your company can benefit from outsourcing these jobs. By outsourcing, you hire the expertise that can easily tackle such challenges and ensure your company is abiding by all the employment rules. You minimize errors or any potential liability.

5. You have delegated HR responsibilities to your other employees.

   This is a common way small businesses are known to operate. As in-house hiring of HR employees can be costly, the company usually delegates those duties to their existing employees. While it may seem like a money-saving decision, it negatively impacts business in two ways. One, your employees are not experts in HR. The tasks they perform are done with the limited knowledge they might possess, and so the results may be lacking. Two, if they are working on HR jobs, they are not doing their own job. HR duties delegated to them are additional work that can hamper their productivity, which in result, can hamper the company’s product or services. So, in the long run, delegating to your employees is doing more harm than good.

6. You are missing submission deadlines.

   HR is responsible for the submission of various forms and other vital documents on behalf of the company. There is a lot of paperwork involved. A company cannot afford to miss the deadlines of these submissions. But inadequate or overworked HR staff can result in missed deadlines, which can cause serious issues. By outsourcing some of the HR services, you can free up the time of your in-house HR employees to focus on high-value tasks while you hire offshore employees to deal with the rest.

The above six signs are a clear indication that you need to outsource human resources. Whether you want to outsource the entire HR services or hire additional offshore employees to support your in-house team, it is your call to make based on your requirements. But offshoring can give you the breathing room you need to focus better on your business.