subject: Why Should SMEs Outsource Their HR? [print this page] Why Should SMEs Outsource Their HR? Why Should SMEs Outsource Their HR?
Anyone who has ever either managed any size group of people or owned a business with more than a couple of employees knows the hard truth about personnel: that managing humans is even harder than managing a business.This is even more difficult for managers or owners who genuinely care for their employees. It's not that people's lives are a problem for business, it's the simple fact that human resource issues, from the on boarding process for new employees (can you honestly say with real confidence that your current process goes smoothly?) to managing of employee health plans, any company of size understands that HR isn't something that can be handled in an hour or two a week; it's a full time job.Many small companies try and manage this process with a small staff, sometimes as small as a single person. This really isn't a solution. Remember, just as with any process in your business, the idea is building processes that scale. If your company grows as you expect it to, it quickly becomes a huge departmental need to manage all of the benefits, new hires, plan changes, payroll documents, and employee performance reviews.However, for small to medium sized enterprises, they should be taking advantage of the same processes that they are likely using in other areas of their businesses: outsourcing their HR.Outsourcing HR does not always mean that the entire company is managed from afar. There are different solutions available depending on need and comfort level. Perhaps your company would like a couple of people on it's own staff who coordinate with an outside firm that handles benefits, on boarding and more. An outsourced solution is an incredible benefit in that businesses pay for services without trying to also manage an HR staff of ever growing size. The HR needs, and costs, are managed to a small resource, if any, which leaves the majority of the personnel in the company to be focused on the actual core business process.This concept is perfect for a growing company, because as the company grows, the HR grows as needed without costly hiring, training and keeping up with the constant barrage of legal issues. Managing human resources is a daunting task with massive legal implications, so having a partner with resources and experience is an incredibly smart move.One of the downsides of business can be made smoother as well. While it's important to plan for growth, businesses must also be able to handle scaling down during times where hiring personnel becomes difficult, or in times of poor economic conditions, reduce staff. With an outsourced solution, this entire process scales downin a much more orderly and cost effective manner.
