HR Outsourcing

5 indications that it’s time to Outsource your HR Function

As a startup or small business owner, you’re always looking for ways to streamline your operations and maximise profits.

That’s why it’s important that you take a critical look at your HR department—because if you don’t, it could cost you big time.

Almost every business owner has to deal with the same problem: hiring. It’s the most important part of running a business, but it’s also the most time-consuming and difficult.

When you’re getting started, it can be hard to find the right people—and once you do find them, it can be even harder to keep them around.

Here are five signs that indicate it’s time for your company to outsource its HR:

Business is rapidly growing

When your business is growing, you need to make sure that you’re keeping up with the demand. This might mean hiring more people or buying new equipment.

If this isn’t happening—and it’s not because of a recession—you should be looking at ways to improve efficiency and reduce costs.

HR outsourcing is one way to do that: it allows you to focus on growing your company by outsourcing the work of managing human resources issues like payroll and benefits administration so that you can focus on what’s most important for your business, which is scaling up your business.

You’re struggling to attract the right people

If you are not able to attract the right people it is not because you are not able to offer them good salaries, many a time it is because of the right HR process and systems and culture of your organization.

By outsourcing the human resources management function, you get access to best HR practices and trained resources who can help solve these issues by making sure they’re handled professionally who know what they’re doing and have access to tools designed specifically for managing hiring processes efficiently.

Compliance issues are troubling you

If your company is facing compliance issues, it may be time to outsource your HR functions.

Compliance issues are trouble for many businesses, but they can be particularly troubling for small companies that don’t have a dedicated HR professional or lawyer on staff.

The regulations involved in hiring, firing and managing employees are always changing and difficult to keep track of even if you have someone on staff who is responsible for doing so.

Smaller companies also often find it cost-prohibitive to hire an independent contractor who knows all the regulations from head to toe (not to mention the fact that finding such an expert takes time).

HR costs are going high

When you try to manage things in the house you will have to hire experienced HR resources who can manage things independently they are expensive and it does not make sense to hire full-time experienced HR resources for small businesses and they can simply work with HR Outsourcing companies who can handle their HR department independently almost at a half rate so they can utilise this fund in sales and marketing function.

Employee retention rates are poor

If your employee retention rates are poor, it’s time to consider outsourcing your HR function. Employee turnover is a drain on the company’s resources and knowledge base.

When employees quit or are laid off, they take their skills with them, leaving no one behind to replace them or continue their work.


The bottom line is that there are many reasons to consider outsourcing your HR function, with the most important one being that you have a more efficient process with better results.

We’ve covered just five here today but can think of dozens more! The decision should be made based on where your business currently stands and what goals it wants to achieve over time.

One thing is certain: if you need an expert in human resources who will adhere to all regulations without exception, then outsourcing this job may be the best way forward for your organization.



Leave a comment

Your email address will not be published. Required fields are marked *