Advantages of Contracting Human Resources Functions

Figure 01

Outsourcing your human resources function is useful if you don't have the time to handle the tasks yourself. You can contract with a professional HR company to perform personnel-related duties, such as hiring, training, discipline and termination. If you don't have the skill to perform the functions, and you don't need a human resources department, outsourcing the work can have advantages for your company.

Save Time and Money

Running your business may require you to procure sales, fulfill orders and deal with customer service issues. In addition, you may be in charge of updating your website, acquiring equipment, purchasing products, contacting manufacturers and a variety of other duties. Taking the time to screen employee applications, conduct orientation for new staff members and handle payroll can become a burden. If you want to delegate these responsibilities but can't afford to hire a full-time employee to perform them, contracting with a company that can do it for you for a fee may be your best option.

Limit Liability

Managing employees is more than just giving instructions and paying them to perform their duties. Conflicts in the workplace can arise between coworkers or with you and an employee. You may need to discipline or fire someone but aren't sure about the best way to approach the situation. Handling personnel issues and requests, such as maternity leave or worker's compensation, may require knowledge of state and federal laws. Human resources contractors are educated and trained in the rules and regulations that govern the management of employees. (Deeb, 2018)

Benefit to Employees

The guidance of a professional human resources company can improve workplace conditions and boost employee morale. Having HR functions centralized for employee access and prompt response to questions ensures that decisions involving the staff are handled properly. In addition, if your company is too small to provide medical and other company benefits, a human resources contractor can pair you with providers who may offer your employees affordable options. (Biswas, 2017)

Considerations

Before outsourcing your HR functions to another company, calculate the amount of time needed and the costs involved to perform the tasks properly. If your staff is very small, contracting these services may be more than you can afford. Also, determine if you are knowledgeable enough to handle all human resources-related issues when they arise. If you decide that you can save money and more efficiently manage your staff by outsourcing, ask other business owners in the area if they can recommend a company to you or call references to ensure that you will contract with a reputable organization.

References

Biswas, 2017. yourarticlelibrary. [Online] (1.2) Available at: https://www.yourarticlelibrary.com/human-resource-management-2/hr-outsourcing/99683 [Accessed 06 May 2022].

Deeb, C., 2018. Advantages of Contracting Human Resources Functions. Contracting Human Resources , 1(13), pp.74-84.