When you think about HR outsourcing service companies, what comes to mind? Someone to handle payroll, benefits, and compliance issues? You’re right, but not entirely.
Outsourcing organisations can do much more to impact your business positively.
The fact is that it takes a lot of high-level skills to make your company grow. It all starts from hiring the right people and managing them to improve your customer satisfaction, boost sales, improve your products and services, and think ahead for your business.
Unfortunately, not being able to perform these tasks effectively causes a lot of business owners/leaders to struggle.
So, if you have hired an HR outsourcing service or intend to hire one to help you with purely tactical HR issues, please, understand that some HR outsourcing companies are capable of so much more.
They know how to organise people and processes around a common purpose to help you attain business goals. They can provide professionals who collaborate with your company’s leadership to diagnose problems and proffer solutions that help to minimise employment-related risks and improve company profitability.
Before hiring an HR outsourcing service, take out time to thoroughly read through their website and see what services it provides. And if you are engaged with an HR services provider, spend time reading your contract.
For example, an excellent professional employer organisation (PEO) gives your employees access to benefits that would have been far too costly for most small businesses to provide.
It also offers a wealth of services to help you energise your employees and improve engagement and productivity. If the contract with your PEO doesn’t reflect these advantages, you might wish to review the terms.
Established PEOs have well-developed abilities to give businesses the following comprehensive advantages.
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3 Advantages of HR Outsourcing Service Providers
1. Facilitate Critical Processes Within Companies
A good PEO complements a business no matter where it is in its growth cycle.
So, whether your business is at the start-up phase, the growing mid-market phase, or the stability or reinvention phase, an experienced HR outsourcing partner can work with you to facilitate the critical processes within your organisation that enable it to grow to achieve optimal results.
To facilitate vital processes like product development, sales and marketing and customer service within your business, good PEOs can work with you to attract, hire and retain employees.
In addition to expected benefits, a PEO like Workforce Africa can provide your employees with additional benefits such as retirement training courses and plans and employee assistance programs, most of which can be handled online.
2. Facilitate High-Level Talent Management
Even though many companies have some form of talent development program designed to nurture their rising stars, most organisations still struggle to optimise their talents.
The reality is that effective talent management begins with the proactive attraction, development, engagement, and retention of the talent required to execute your business’s strategic plan in a way that aligns with your corporate culture.
Talent management is, therefore, a very rigorous and systematic process. If one stage is not well managed, it can reverberate to the next stage.
A competitive HR outsourcing service company can work with you to plan and execute a highly effective talent management program that helps your organisation achieve its goals.
For instance, when Workforce Africa works with its client in this regard, we start by first gaining an in-depth understanding of their business needs. Next comes the crafting of job descriptions, identifying the core competencies and behaviours expected of successful employees and a carefully crafted job posting.
Once our clients are ready to interview, we send an HR coach to help them and their hiring managers improve their interviewing skills and learn to identify people who will fit their company’s culture.
Finally, once they’ve hired a new employee, we provide an onboarding and orientation program to help the newcomer acclimate faster.
3. Support for Business Growth and Sustainability
Why do businesses fail? Forbes lists the following issues among the top ten precursors to business closure:
- Reason #1 Outperformed by a competitor
- Reason #2 Didn’t have the right team
- Reason #3 Money management issues
- Reason #4 Insufficient business model
- Reason #5 Poor marketing
- Reason #6 Ignored customers
A PEO can work with you to prevent all these potential sources of failure. How? In three ways, actually.
A) The gift of focus: Good PEOs allow you to focus on the tasks that matter the most since they can often take over a lot of the mundane, routine tasks associated with running your company.
Having the time to think ahead, plan and execute your strategy will keep you in the know of what your competition is doing and hopefully ahead of them too.
B) The gift of talent management expertise: A PEO partner like Workforce Africa has spent 17 years building a robust and resilient HR infrastructure that they can deploy to your business in a matter of hours.
When you have a PEO like Workforce Africa as a co-employer, you have a partner with the complete resources to manage your talent from recruitment to retirement.
C) The gift of a robust Learning & Development infrastructure: Having an empowered learning and development team on standby to respond to your organisation’s changing learning needs is a competitive advantage that few businesses have.
When your employees have access to the custom-fitted training that they need at every given time, this improves their performance and can inspire their loyalty to your organisation. And the result of employee loyalty is talent retention.
This, in turn, improves the productivity of your organisation and its profitability.
To sum up:
HR issues can be complex; they can consume time, distract you from your core functions and affect the overall performance of your business if not well managed.
However, no other function in a business is quite as sensitive as the HR function. This is because HR is the business, and the business is HR; there can be no separating the two.
A good PEO can handle much of your HR Outsourcing service needs and free you to focus on running your business.
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