Payroll Outsourcing

Top HR Outsourcing Services Myths: Busted

Often, HR managers are found juggling too many things, making the entire process more time-consuming and expensive. As such, many organisations have switched to outsourcing and for good reasons. HR outsourcing can help boost operational efficiency, mitigate unforeseen risks, ensure compliance and save time which HR leaders can leverage for strategic roles.

Most importantly, outsourcing to a specialist ensures your employees get the right benefits – a key element in attracting and retaining talent in your organisation. However, if you are sceptical about outsourcing HR functions because of all things negative you’ve heard, we will help debunk the most common myths.

Myth 1: HR outsourcing isn’t for small and large enterprises

Many people have the misconception that HR outsourcing is ideal only for mid-sized businesses. This isn’t true. Many Fortune 500 companies today outsource their HR roles, especially recruitment, to hire talent and save more time for strategic functions.

For small businesses, hiring professional HR consultancy services enable them to manage key human resource functions, stay compliant and focus on revenue-generating processes better. On the other hand, bigger companies have too many things on their plate. As such, time spent on managing payroll services or all HR activities will result in less productivity.

Furthermore, as  business scales, managing HR becomes more cumbersome and elaborate. Hiring an in-house HR team or getting more people can be difficult. Outsourcing HR services can take the burden off your shoulders and provide high-quality services.

Myth 2: HR Outsourcing Partners Handle Only Administrative Work & Paperwork

Often, business owners have the perception that an HR outsourcing firm cannot assist in HR strategy building, culture & engagement, performance management or talent development. This is a myth. A good HR partner will integrate seamlessly with your company and serve as an internal HR leader.

Outsourcing HR consultants can power your team with key functions such as talent acquisition, orientation and onboarding, policies & procedures, compliance, workplace culture, leadership coaching, performance management, and more.

Myth 3: HR Outsourcing Means Poor Control & More Money

The truth is: an HR outsourcing company functions as an extension of your team, offering their expertise and knowledge to give you a competitive advantage. Additionally, outsourcing to experts can help in improving employee productivity, minimising grievances and abdication, and reducing admin costs by up to 35%.


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