benefits of outsourcing HR

7 Reasons to Outsource Your HR Functions

The human relations (HR) department plays a vital role in any organisation. It is responsible for employee management—recruiting talents, onboarding and training new hires, and managing employee benefits. 

Unfortunately, many small and medium-sized companies do not have the resources to set up an efficient in-house HR department. If your business’s HR needs exceed your internal capabilities, consider outsourcing some of your HR functions. This strategy offers various business benefits, which we will discuss in this article.

1. Gain access to global HR experts

Like any other profession, HR management also involves specialisations. These include recruitment, employee training and development, and compensation and benefits. Working with an outsourcing service provider can give you access to global HR talents with these skills and expertise.

Whether you run a small or large company, a single person cannot handle every function an effective HR division requires. It demands a team of experts to deliver results efficiently. 

However, hiring multiple HR professionals may not be financially sound if you manage a small business. In this instance, turning to human resource outsourcing may be a practical alternative that will allow you to benefit from having global HR experts in your team. 

2. Mitigate legal risks and stay compliant with HR laws

Having HR specialists on board ensures your company complies with HR laws and regulations. There are many things to know regarding labor laws and trends, and keeping up with them is even more challenging because they are constantly changing. With an outsourcing partner to lend a hand, you can mitigate the legal risks of non-compliance with HR laws. 

Your offshore HR team can evaluate and update your hiring procedures to comply with the regulations of the country where your business operates. They can also review your company’s policies on wages, working hours, and leaves to make sure they are proper and reasonable under the law.

benefits of outsourcing HR

 Photo Credit: Sora Shimazaki via Pexels

3. Streamline the hiring process and orientation

The recruitment process can become challenging, especially when you have limited staff. One of the benefits of outsourcing HR is that your offshore HR team helps streamline your company’s hiring process and orientation with their expertise and modern technology. 

The hiring process entails multiple tasks: posting job positions, collecting and screening resumes, scheduling interviews, performing background checks, and conducting pre-employment skills assessment tests. Your offshore HR team can carry out these functions with focus and efficiency, making the process faster and more organised.

4. Improve employee relations

Since workplace issues are inevitable, it is crucial to have HR experts settle the matter professionally. Whether it is an issue regarding performance, working hours, wage, or attendance, an outsourced HR team can help iron things out, thanks to their extensive training. Their fresh and unbiased perspective also comes in handy when resolving internal disputes. 

A dedicated HR team can also help improve employee relations by facilitating open forums and other interactive activities that encourage openness and collaboration among the organisation’s members.

Another benefit of HR outsourcing is that your offshore HR team can create a handbook on your company policies and practices for new employees. You could also tap them to conduct coaching and other career development sessions.

benefits of outsourcing HR

Photo Credit: Mikhail Nilov via Pexels 

5. Manage performance review

When you work with an outsourcing service provider, your offshore HR team can help facilitate your employees’ performance reviews. They can develop templates and documentary tools to evaluate internal workforce performance. They can also conduct one-on-one assessments to identify each employee’s weaknesses and look for ways to improve them, including relevant training programs.

6. Save time and money

As a department that does not generate profit yet utilises business resources, it is only wise to consider outsourcing your human resources functions. Hiring an in-house HR team means a larger workplace, salary and training expenses, taxes, and other operational costs. Outsourcing reduces these costs, enabling your business to save money.

7. Focus on strategic functions

Outsourcing HR also allows you to focus on strategic functions for your business. Since your offshore team takes care of the HR tasks, you can concentrate on business aspects that directly generate profits. Outsourcing HR also frees your onshore employees of workload, enabling them to focus on core business functions. 

Streamline Your HR Process by Outsourcing

The business benefits of outsourcing HR are aplenty. For one, it helps ensure your company stays compliant with HR laws. Outsourcing also streamlines your hiring process, reduces operational costs, and helps secure the best talents for your business. 

If you want to outsource your HR functions, consider working with optiBPO. We can help you plan, build, and manage a dedicated offshore team in the Philippines that serves as an extension of your organisation. Contact us today to learn more about outsourcing!


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optiBPO can help you plan, build, and manage a dedicated outsource team in the Philippines. Contact us today to discuss your requirements.