Your company’s HR department carries out several important functions. From managing pay roll to taking care of employee benefits. HR department also handles filing paperwork and training and development of the staff. If you are a start up or a company that cannot handle having such a complex department in-house, then outsourcing HR functions may be the right option for you.
There are several reasons why a company should outsource their human resource processes and functions. Below are a few of them –
1)Reduction in costs
Human Resource department is a non-revenue generating department. If you want to have this department in-house, they will require infrastructure, training, employee benefits. All this increases the costs of day to day operations of any business. If your business is a start up, you would not want to incur this cost. It is much more economical to outsource these functions to a reliable outsourcing company that will handle all HR functions themselves.
A Human Resource outsourcing company helps reduce the risk for your start up as well. Labor laws are changing regularly and for your company, it can be very difficult stay up to date with them. HR outsourcing companies have experienced staff employed that keep themselves informed of any new development in labor and employment laws.
Compliance with these laws can protect a company from potential law suits. An outsourcing firm also ensures that your company’s policies are up to date to ensure that both the company and its employees best interests are looked after.
3)Development of Staff
HR outsourcing firms take it upon themselves to keep an eye on the performance of the staff. They make sure the employees are complying with the company policies and are meeting the organization’s goals. The outsourcing firm will also look after the training and development of those staff members. Periodic reports will also be prepared by them of each employee’s progress and sent to managers, thus taking a burden off their shoulders.
Outsourcing HR functions also help create or increase the efficiency of your business. While HR outsourcing companies are handling all the paper work and other tasks, your core team of managers can focus more on their work and this leads to overall improved business results. Also, outsourcing companies have advanced technology that they use for streamlining HR functions thus reducing time spent on each task, further increasing the efficacy of HR processes.
Octopus Tech is an outsourcing company that can handle all the HR functions of your start up, thus reducing your costs of operations and increasing efficiency in your business. To know more about our services, contact us today!