By outsourcing HR services, you can spend less time on administration and more time concentrating on expanding your company. Any business can be taxed by administrative duties, but smaller enterprises, in particular, may find it challenging to manage their human resources. The last thing you want to do while running a small business with limited time and resources is to focus on anything other than your primary line of business. Your administrative strain can be reduced by outsourcing human resources tasks, giving you more time to concentrate on your company's goals.
Why Should You Consider Outsourcing HR services?
If you haven't given outsourcing any thought, you might be surprised by the variety of duties that can be delegated. Payroll processing, benefit plan management and administration, recruiting, training, and other human resources tasks can all be managed by an HR outsourcing team instead of being divided up among many service providers. You'll spend less time on administration and more time managing vendor relationships if one provider is in charge of handling a variety of HR functions.
Finding an outsourcing platform that will collaborate with you to offer services that are simple to use and accessible for your staff is crucial. There is a lot of talk about outsourcing, but the true value is only realized when internal employees are engaged in the service and have access to these resources as intended.
Below are a few reasons why you should consider outsourcing HR services:
1. It’s cost-effective
HR departments need more office space and well-trained employees to operate effectively. Instead of recruiting specialists and extending their office space, the majority of small and medium-sized firms opt to outsource their HR services. Once HR functions are outsourced, overhead costs are readily avoided. Additionally, outsourcing expenses are flexible and can be increased or decreased based on your company's needs.
2. Improved efficiency
The majority of businesses outsource HR duties because it increases productivity inside the human resources division. HR services that are outsourced help to streamline important HR processes, including compliance, payroll, and personnel administration. Companies that outsource HR services unquestionably have more time to concentrate on revenue and other key company operations.
3. Easy risk management
HR services outsourcing lowers business risk. It can be challenging for businesses to stay current with the newest technologies and business practices because the majority of regulations and services are frequently updated. HR specialists at outsourcing companies stay current on the newest policies and services. Additionally, when HR services are outsourced, businesses are always guaranteed undisturbed services. In essence, outsourcing HR services give you access to a talent pool that is knowledgeable about the most recent industry changes.
4. Offers flexibility
The flawless operation of the HR department is one of the main motives for outsourcing human resource services. For instance, if your company is experiencing an information influx, you may easily meet the urgent needs by outsourcing your HR services. This also makes it possible for your business to continue operating as usual. Flexibility is unquestionably a significant advantage of outsourcing human resources that should not be neglected.
5. Organizational development
Employee growth is supported by an organization's overall development. When opposed to a situation where these things are handled internally, outsourcing HR services often improves both the overall quality and the turnaround time. Often, outsourcing staff aid with employee training and performance monitoring. This thus lessens the in-house managers' administrative duties.
Small Business HR Outsourcing Trends in 2024
A few years ago, we first saw some fresh developments in HR outsourcing. However, some of these trends have deeper foundations, including the ongoing propensity to shift toward the cloud. Although cloud computing is nothing new, it is becoming more and more popular in areas like outsourcing since it is a practical way to share work and interact when people are dispersed around the globe. You can quickly access information and communicate with outsourced workers due to cloud computing.
Even when hiring talent that is outsourced, some businesses are starting to look toward social media as a recruitment tool. Businesses can connect with potential employees via social media, regardless of where they reside. If you're looking to hire HR personnel that isn't necessarily close to your company's location, it can be a very useful recruitment tool.
Last but not least, some businesses are thinking about "selective outsourcing," which entails outsourcing some but not all of their HR requirements. This strikes a balance between the advantages of outsourcing HR and its drawbacks (such as time zone differences and communication difficulties).
A Word on Pricing of Outsourcing HR Services
The majority of small business owners will consider price a key factor when selecting HR outsourcing services. However, based on the requirements of the business, HR outsourcing services are highly customizable. It's vital to remember that depending on the number of employees and the specific services needed, monthly outsourcing fees might range from $45 to $1,500. Services can occasionally be contracted out for a set monthly charge as well.
Fully outsourced HR services have a wide range of costs and are frequently tailored to the specific requirements of the business. However, the cost can typically be significantly lower than hiring a full-time HR employee for your small business when comprehensive service and technology solutions are combined for on-site HR support, payroll, and retirement benefits. This figure can be as low as $1360 per month for 10 employees.
Best HR Outsourcing Services for Small Business
VirtualStaff.ph offers all the features and options you could ask for. Want a customized team built specifically for your business requirements? Want to select a couple of staff on a part-time or full-time basis? You’ll be able to fulfill all your changing HR needs with the use of VirtualStaff.ph.
Below are the options that you will get using VirtualStaff.ph:
1. Standard plan
Using the VirtualStaff.ph’s standard plan, you get the option to scroll through the endless profiles of highly-qualified staff, contact them, conduct interviews, hire them, and pay them by tracking the hours they worked, all from within a single dashboard.
Below are the features that you get:
- Post unlimited jobs: Looking to hire multiple employees for various positions? Create unlimited job postings and receive applications from staff that match your criteria.
- Message applicants: Reach out to qualified candidates and discuss job requirements.
- Send job offers: Reach out to candidates with tailored job offers.
- Hire unlimited employees: Build an entirely remote team by hiring as many applicants as you want to.
- Track hours worked: Use the time-tracking software absolutely for free to track the hours your staff has worked and calculate payment accordingly.
- No payment processing fee: Doesn’t matter where you reside; pay your workers securely within VirtualStaff without incurring any payment processing fee.
- Customer support: Reach out to the team in case of any queries via live chat, email, or messenger.
2. Enterprise plan
Recruitment, payroll, compliance, legal protections - everything is taken care of when you choose the enterprise plan. An entire HR team will be created for you in three simple steps:
1. Tell your recruitment goals: What type of staff do you need? What skills do they need to have? Mention all your requirements, and a dedicated client success manager will help you decide on the best options.
2. Choose the best staff: The team will choose the best staff, conduct preliminary interviews, and set up final interview rounds with the best applications according to the goals you mentioned.
3. Onboard your new staff: Seamlessly onboard the new staff you selected, with your client success manager facilitating the entire process.
Below are the features that you get using the enterprise plan:
- Recruitment specialist: The talent acquisition team will find you the best staff based on what you need.
- Client success manager: Have an expert in your corner. You get your own experienced client success manager to help you make this a long-term success.
- Legal protections: We protect you by onboarding the staff with our Philippine entity before assigning them to work for you. This means we can provide additional legal protections that you otherwise would not have.
- Simple pricing: The amount you pay includes everything: staff salary, our management fee, payroll, and all legal compliance.
- Staff monitoring: Your client success manager will track the hours your staff work and guarantee that you never pay for any time your staff doesn’t work.
- Peace of mind: You will have the full weight of Virtual Staff behind you to make offshoring to the Philippines a long-term success.
So, are you ready to get started? Build your remote HR team by outsourcing to the best platform! Talk to an expert now!
