There are many reasons why a company would choose to outsource their HR services. In fact, many business owners make the decision to outsource Human Resources when they realize just how many ways it can benefit them. Business owners with a firm understanding of Human Resources outsourcing are often eager to contract an HR consultant rather than develop an entire inhouse team.
When you’re expanding your business internationally, the nuances of HR become more tricky. An inhouse HR department may prove difficult and costly to staff. It’s vital that you know the facts about outsourcing HR on a global scale to inform your decision.
Let’s take a look at the 5 main reasons why small and mid-sized businesses choose to outsource their HR services.
Outsourcing your HR services can save you time, money, and stress, among other benefits!
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1. Outsourcing Your HR Services Will Save You a Lot of Time
One of the first things that our clients notice is how much more time they have available.
So often, the tasks associated with HR at small businesses end up being assigned to people who already have a lot of work to do.
You may have thought when opening your business, “Well, we don’t have many employees, so how difficult can HR be?” And then you realize that even if your business is small, the HR workload can be intense! Small business HR outsourcing solutions might provide the cure for your staffing woes.
Outsourcing means that you can relinquish the following time-consuming responsibilities to an expert HR representative:
- Payroll enrollment and management
- Staffing the HR help desk
- Benefits management
- Writing policies, handbooks, and procedural guidelines
- Most administrative tasks related to your employees
- Recruiting new employees
- Onboarding new hires
- Employment contract management
- Employee training
- Managing terminations, severances, and retirements
Additionally, an outsourced HR consultant can do this work much faster than someone at your company, as they have tons of experience. There is no learning curve needed to master new technologies, software, policies, or processes. Instead, your new HR team can start immediately and have more effective policies implemented right away.
2. HR Outsourcing Can Save You Money
It’s not uncommon to hear small business owners say, “I can’t afford to have someone do my HR work.”
What these business owners don’t yet understand is that their way of running HR is likely costing them more money in the long run. So how can you work toward achieving cost efficiency through HR outsourcing?
Outsourcing your HR means you never have to onboard a dedicated HR professional or team. You get the benefit of professional knowledge and experience without the need to pay additional salaries and benefits packages.
When your HR tasks become too overwhelming for your current team to manage, contracting with an outside vendor is far more cost-effective than hiring a full-time HR representative.
Additionally, outsourcing frees up countless hours of work time that were previously spent on HR tasks. If it was taking you 5-10 hours a week just to manage your human resources responsibilities, outsourcing is basically the same as giving yourself 5-10 more hours in the week to grow your business!
3. Outsourcing Alleviates Your Stress
Workplace stress is a serious problem, and it’s costing European businesses billions of dollars.
Some of the problems that can lead to workplace stress and burnout include:
- Long hours
- Boring work responsibilities
- A workload that is too heavy
- Too many tight deadlines
- Job uncertainty & insecurity
- Major changes within the company
- Low compensation
For many small business owners, managing the HR workload is just another stressor. It is often full of tight deadlines and repetitive work. Plus, you have to constantly learn new things about the HR industry, even though that’s not your passion or your skillset.
Outsourcing alleviates stress because you get to let go of the overwhelming responsibilities of HR work. You no longer have to worry about making costly mistakes by not understanding the ins and outs of a specific law.
If you are an international company with employees in multiple nations, the stakes are even higher to get everything right. There is a huge benefit to hiring someone whose job is to know the employment laws of each nation your company is in!
4. Outsourcing Reduces the Number of Vendors You Have to Work With
When you choose the right HR company, you can reduce the number of vendors and contractors you have to manage.
This is especially important for businesses that operate internationally. You want to find an HR company that can handle tasks that often fall to multiple vendors, contractors, or additional employees.
- Benefits consultants
- Payroll vendors
- Corporate and labor lawyers
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5. Outsourcing Your HR Can Solve Short-Term and Long-Term Problems
Outsourcing should never be a one-size-fits-all situation.
Instead, you can outsource HR in a way that works for you and your unique circumstances. Do you need a long-term contract with an HR company who can take over every single part of the human resources experience, or do you just need help with an upcoming project, such as an international expansion into Europe?
At Europe HR Solutions, we have more than twenty years of experience with numerous businesses, each of which needed something slightly different than anyone else.
For example, we have served our clients’ long-term and short-term needs in the following ways:
- Annual agreements
- Multi-year agreements
- Short-term agreements (weeks or months)
- Project-based contracts
- Interim HR services during a period of transition
- On-site, remote, and hybrid services
The goal of outsourcing your HR services is to find a company that will adjust to what you need, not try to fit you into a box!
Outsource Your HR Services to Europe HR Solutions
Europe HR Solutions supports the HR needs of more than 200 companies with an international presence in Europe.
Our team is made up of multilingual HR experts who understand the unique challenges of businesses that operate internationally. We assist with or completely handle your recruitment needs, onboarding, employee training and professional development, benefits administration, compensation research, HRIS system implementation, and coordination of European payroll – among many other things! We are your international HR outsourcing providers.
Contact us for a free consultation! We look forward to helping you develop an HR strategy that will give you all of the benefits we’ve listed here – and more.