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Advantages of hr outsourcing for sm es

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HR outsourcing can be a key factor in resolving pertinent employee-related issues for small businesses, providing support in effective employee recruitment, retention, and management areas in a cost-effective manner.

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Advantages of hr outsourcing for sm es

  1. 1. Five Advantages of HR Outsourcing for SMEs
  2. 2. Should SMEs outsource HR functions? Small and medium enterprises (SMEs) spend around one fourth of their productive time to handle employee-related paperwork and wide-ranging areas including employee recruitment, insurance, payroll, and benefits, as also compliance and insurance etc. It makes sense for SMEs to engage outsourcing services to manage increasingly complex HR processes in a time and cost-effective manner.
  3. 3. What are the key advantages of HR outsourcing?  Reduces time and effort for talent acquisition Provides profitable labor arbitrage Encourages business innovation and productivity Ensures effective employee management Improves adherence to risk & compliance regulations
  4. 4. HR outsourcing reduces time and effort for talent acquisition Acquiring skilled staff is a major HR function, but is inordinately time and effort-intensive. Tapping the expertise of HR service providers can provide ready access to databases of rigorously screened skilled professionals across domains. Tying up with remote staffing agencies allows you to bring specialized offshore virtual workforce on-board to manage the local skill-deficit.
  5. 5. HR outsourcing provides profitable labor arbitrage Labor arbitrage can lead to tremendous cost benefits, particularly if it is off shored to developing economies. HR managers earn a median annual salary of $98,550 in the US, while an experienced HR professional in a country like India is likely to cost a fraction of this amount. Along with it, the staffing agencies bring their industry-specific expertise and latest technology, without any investment.
  6. 6. HR outsourcing encourages business innovation and productivity A number of HR tasks involve tedious functions such as tax filing, leave policies, payroll processing, and benefits claims processing. It makes sense for SMEs to outsource these functions, and leverage their precious time in business innovation and strategizing.
  7. 7. HR outsourcing ensures effective employee management Recruiting a good employee is as difficult as retaining them. According to industry experts, over 50 % of people recruited in to an organization are likely to leave within 2 years. Outsourcing complex functions such as working out suitable employee compensation and benefit packages, and supporting employee performance through training and mentoring can ensure healthy employee management.
  8. 8. HR outsourcing improves adherence to risk & compliance regulations There are a number of regulations regarding employee insurance claims handling, sexual harassment, wrongful termination, safety violations etc. SMEs struggle to adhere to these compliances and their constant updates, as they cannot afford costly lawsuits. Hiring a compliance expert specializing in these areas can allow SMEs to mitigate risks at a fraction of the cost.
  9. 9. VirtualEmployee.com: A pioneering remote HR service provider VirtualEmployee.com is a remote staffing platform in India providing dedicated skilled employees for HR solutions at competitive rates. It addresses critical concerns regarding outsourcing HR processes by offering: Readymade databases of skilled HR employees for urgent hire Domain-specific HR expertise and experience Dedicated remote HR employees working in specified time zone Confidentiality and privacy of company data under vigilant managers
  10. 10. Get competent HR professionals by engaging VirtualEmployee.com as your remote staffing partner. Thank you for your time

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