Posted on January 19, 2021

There are a several reasons why you should outsource HR, and there is no company too small or too big to start outsourcing. It will open opportunities for your company to develop its core competence whilst potentially reducing your labour cost in many ways that you did not even consider. Hopefully, after reading this article, you would be convinced of the opportunities it provides.

The most expensive words in business are “I have always done it this way”. Did Steve Jobs stay with the status quo? Or did he think differently and change the world’s view of technology. The point is technology and outsourcing can take your company to the next level. You just must be willing to think differently, much like Steve Jobs did with Apple. Below are our top 6 reasons you should outsource your HR.

1.      Reduction of legal risks

Many people just do not know how challenging the rules and legal processes can be for HR, particularly with regards its inherent compliance requirements and costs of default. When you outsource HR, you will put the job in the hands of people who can focus on their duties as well as changes in the rules and regulations as it affects your business. This will in turn ensure the reduction of legal risk that are linked with laws associated with employment and HR practices.

2.      Increased Focus on what matters

When important HR duties are taken care of, your team will be able to focus more on their specialties towards growing the business and you can focus resources on building the core product development team. If you are running a law firm, you can focus more on giving legal advice to your clients. If you operate an automotive technology business, you will want to focus on repairing and maintaining vehicles and managing customer service requirements.

3.      It is cost-effective

Costs will be reduced when outsourcing HR which will allow the company to focus on their main business and customer-facing responsibilities. You can expect savings of about 20-30% compared to keeping all your human resources functions in-house, and the right provider offers the peace of mind of knowing your HR duties are being handled by a seasoned expert.

4.      It will help you offer more services

When you outsource part or all your HR functions as with other business support services, most times you will be able to offer more services and benefits that you perhaps were not able to give as a singular small business. HR specialty firms may have access to economies of scale since they work with a lot of clients, and this can open more benefits to offer so that you can hire more people and satisfactorily retain your top talent.

5.      Access to technology will be better

Access to technology and the latest in best practices is a big reason to outsource HR. HR specialists know where the technology is going, know what the best practices are for every HR function, and stay ahead of any changes in laws or regulations that affect them. By outsourcing HR, you can take advantage of these technology benefits which are available because it is the core business of your HR Outsourcing Partner and thus for them a required investment.

6.      It helps to reduce overheads

When you partner with a PEO (professional employer organisation) to outsource HR, you will improve the health insurance benefits for your clients that are in small to medium-sized offerings. A PEO will also connect your organisation’s employees to a much larger employee base, which results in better coverage.

For support on your HR needs particularly with respect to outsourcing for SMEs send an email to

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