If you happen to be running a small business that often finds itself short on time and resources to effectively manage crew-level HR tasks, then you should start discovering how outsourced HR can help grow your business. According to PR Newswire, the global HR outsourcing market was estimated at AU $46.7 billion in 2020. By 2027, it is expected to reach AU $65.3 billion, with a compound annual growth rate of 4.9% between 2020 and 2027. This growth can be attributed to the adoption of recruitment analytics and digitization within the industry. Outsourced Human Resource (HR) services can provide the perfect solution for businesses looking to grow without getting bogged down in mundane duties. From daily payroll management and regulatory compliance issues, to creating beneficial employee benefit packages, outsourced HR provides reliable support for all types of small businesses.
Why do you need to know how outsourced HR can help grow your business?
When it comes to running a small business, there are a myriad of tasks that need to be managed in order to keep things running smoothly and ensure growth. One of the most important areas is human resources management – but with limited time and space available, this is something often overlooked or put on the backburner. You can unlock your business’ potential for better recruiting, onboarding, training, performance management, and even employee retention when you understand how outsourced HR can help grow your business. Furthermore, as the market continues to expand as a result of the digitization of human resource outsourcing, online platforms should be digitized in order to support the Industry 4.0 trend and cutting-edge database management systems. Thus, throughout the forecast period, the global market for human resource outsourcing would rise due to technical advancements and the rising acceptance of digitalization.
How outsourced HR can help grow your business in numbers and more:
The two most commonly outsourced HR functions are employee training initiatives (58%) and recruitment (38%), with 35% of businesses with fewer than 1,000 employees outsourcing one or more HR functions. According to PrismHR’s 2019 Human Resource Outsourcing (HRO) Trends Report, the top five services offered by HR outsourcing organizations were:
- HR consulting: 45%
- Benefits administration: 36%
- Time tracking: 24%
- Insurance services: 19%
- Performance management: 10%.
You save a huge chunk of time, which is how outsourced HR can help grow your business.
One of the primary benefits of outsourcing HR is that it can save your business time. Around 45% of small business owners spend almost an entire day a week or more on administrative HR issues, which definitely confirms that HR tasks can be time-consuming. So, by outsourcing them, you can free up your staff to focus on other tasks. Additionally, an outsourced HR provider will have a team of experts who are experienced in handling HR tasks, which can further save your business time and demonstrate how outsourced HR can help grow your business.
Whether you’re a small or big business owner, having time to work on things that matter is key to keeping your business alive and kicking.
Routine and redundant administrative tasks can eat up a significant portion of every day. When you outsource HR, you no longer have to deal with payroll, employment manuals, contracts, benefits, and workers’ compensation.
How outsourced HR can help grow your business – you reduce costs and drive profit, which is.
Another benefit of outsourcing HR is that it can help reduce costs. The average salary of a HR professional in Australia is roughly AU $97,516. Outsourcing HR can help you avoid the need to hire additional staff, as well as the associated costs, such as salaries, benefits, and training. Outsourcing can also provide your HR department with access to the best global talent, all while saving on employment costs. Additionally, an outsourced HR provider may be able to offer discounts on the products and services that your business needs – a testament on how outsourced HR can help grow your business.
HRO can save your business up to 70% on employment costs.
Depending on where your HR outsourcing provider is located, you may be able to benefit from the reduced cost of living in places like the Philippines, where, for example, hiring an HR specialist would be much less expensive than doing so domestically. Furthermore, quality will not be compromised. You’ll save money that you can use to improve productivity and possibly even promote business growth in other areas of your company.
You improve employee retention, a good thing for your business.
Outsourcing HR can also help improve employee retention. By providing your employees with access to an outsourced HR team, you can help them resolve any issues they may have more quickly and effectively. Additionally, an outsourced HR team can provide your employees with support and guidance on a variety of topics, such as benefits and career development – a sure way on how outsourced HR can help grow your business
83% of businesses believe retaining and attracting talent is becoming increasingly difficult, with 47% of human resource departments stating employee turnover and retention as their biggest challenge.
Smaller firms are better able to handle employee engagement issues and create a positive workplace culture because they have access to higher-quality benefits, formal learning and development tools, user-friendly HR technology, and HR experience from outsourcing.
You increase productivity, which is how outsourced HR can help grow your business.
Outsourcing HR can also help increase productivity within your business. By freeing up your staff from having to handle HR tasks, they will have more time to focus on their work tasks. Additionally, an outsourced HR team can provide your employees with support and guidance that can help them be more productive in their roles. Human resource outsourcing helps enterprises manage their units by lowering per-person access costs significantly, which raises overall productivity in return and proves how outsourced HR can help grow your business.
According to a study by the Harvard Business Review, 50% of executive leadership teams discuss their unit’s strategy for no more than one hour every month.
A full-time job in and of itself, updating policy and maintaining track of staff records. Another full-time role is created when new employee contracts, managing payroll issues, and other tasks are added. If this applies to your company, a possible option would be to outsource these kinds of activities that compete with strategy-focused ones. Giving your business the capability of being more efficient is how outsourced HR can help grow your business.
You improve employee satisfaction, which benefits your business.
Finally, outsourcing HR can also help improve employee satisfaction. An outsourced HR team can provide your employees with the support they need to resolve any issues they may have while offering guidance on a variety of topics that can help your employees be more satisfied in their roles. Outsourcing ensures HR problems are not felt in other aspects of the business; this is suitable for risk mitigation and a step showing how outsourced HR can help grow your business.
Regardless of the size of your business, it is crucial to ensure compliance with union obligations, employee overtime, and superannuation.
Outsourcing human resources can give you the extra hands you need to support your onshore team as they keep track of these developments and revise policies and procedures. When necessary, this additional assistance can work under the supervision of your HR professionals to keep your company in compliance with all applicable local, state, and federal regulations – a key to how outsourced HR can help grow your business.
If you want greater global operational scalability, then knowing outsourcing HR is the first crucial step.
Organizations should examine the holistic service delivery model, corporate priorities, and employee experience when deciding whether to outsource or retain core HR services. They should take the time to comprehend the numerous handoffs and make the transition as seamless as possible while also taking into account the cohesive experience for employees as part of their strategy. Equally crucially, businesses must make sure that their personnel leave the outsourcing transition with the necessary skills and assurance. And when you partner with reliable outsourcing providers like The Outsourcer, you get to know and feel firsthand how outsourced HR can help grow your business and more with a team of dedicated and highly-skilled talent that can guide you, your business, and your life towards success. Sign up now to get started!