Reducing Business Costs with The Power of HR Outsourcing

Human resource demands can overwhelm your small or medium business. This area of your business is critical, especially if you want to move your company to a foreign country. If you find that your current HR system can’t keep up, you might need an HR outsourcing solution.

Not only does HR outsourcing provide you with experienced HR professionals, it also saves you money. Outsourcing international HR operations can help you significantly reduce business costs and effectively manage your HR needs.

We’re here to help. Let’s take a look at some of the most frequently asked questions about international HR outsourcing.

HR outsourcing reduces costs

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What is HR outsourcing and how does it work?

HR outsourcing uses a third-party provider or agency to provide strategic outsourcing for small businesses in order to set your company up for success. You may only outsource one HR representative or hire an entire HR team via an outside provider. They can take on as few or as many HR tasks as your business needs.

When you hire an HR outsourcing agency, you can get assistance with tasks such as:

  • Recruiting and assessing job candidates
  • Writing employee handbooks
  • Setting up and handling employee benefits packages
  • Personnel administration
  • Drafting policies and procedures
  • Creating employment contracts
  • Analyzing training needs
  • Improving business performance
  • Providing an HR help desk
  • Exploring gross and net pay

Typically, HR outsourcing works by hiring an agency to provide either HR assistance or experienced HR professionals to your staff. By having a third-party agency take care of your company’s HR needs, you can save time, money, and build a global business with employees from all over the world.

How does HR outsourcing reduce costs?

HR outsourcing has several benefits, but one of the biggest advantages is reducing costs for your company.

1. You pay $450 less per employee

According to the National Association of Professional Employer Organizations (NAPEO) in the U.S., you can save $450 per employee when you use HR outsourcing. With HR support from an outside agency, you don’t have to hire a traditional HR team.

2. Reduce hiring costs by $4k

On average, it costs $4,000 to recruit, hire, and onboard a new employee according to the Society for Human Resource Management (SHRM). The hiring period also lasts about 42 days. When you outsource your HR work, you don’t have to spend money and time hiring an HR team. You get access to experienced HR professionals as soon as you sign the contract.

3. Fewer penalties for rules violations

Your business must follow social security and employment laws in the country where you operate. If you decide to expand and hire employees in other countries, this can get tricky. With HR outsourcing, you can be confident that your company is following all the rules and regulations concerning employment, so you’re less likely to have to pay penalty fees.

4. Focus more on the lucrative parts of the business

You probably didn’t start your business because you have a passion for human resource management. But you know that managing HR is a requirement for your company. When you hire experienced HR agents, you can focus instead on the parts of the business you love, including the parts that help your company be profitable.

5. Reduce workplace accidents

Accidents happen — and they’re extremely costly when they do. Company downtime, loss of productivity, broken or damaged equipment, and workers’ compensation claims can all result in immediate and unexpected costs. Seasoned HR professionals can manage risks for your company on-site to reduce the likelihood of accidents. They can also help you navigate a workers’ comp case if an accident does happen.

Which HR roles can you outsource?

An HR outsourcing provider can assist you with HR administration, payroll processing, employee benefits, recruitment and hiring, HR compliance, employee performance management, and workplace safety. Just about any role you need filled in your HR department can be outsourced.

Human resource roles outsourcing

How do employees benefit from HR outsourcing?

HR outsourcing doesn’t only benefit you as the company owner. It also has advantages for your employees.

1. Better hiring, onboarding, and reduced turnover

When you work with HR experts, you get access to improved hiring and onboarding processes. Finding good talent is difficult and retaining employees is even harder. An HR outsourcing provider helps you streamline the hiring process, making it easier and more efficient for your new hires. When these processes are followed up by solid policies and procedures, it also encourages employees to stay.

2. More employee engagement

Conducting training assessments, helping solve employee’s administrative problems, and liaising with managers and department heads are all crucial tasks that contribute to a positive work culture. HR experts can help ensure that your employees feel valued and provide ways for them to engage more with your company, even if you have a remote, global team.

When should you outsource HR?

As your business grows, you have to adapt. The HR solution you started with might not be adequate for your expansion. How do you know when the moment is right to search for an HR outsourcing provider?

  • Your HR staff has become costly. HR should be an asset, not a liability. If your HR department isn’t solving strategic problems or costing you more than you can afford, it may be time to outsource.
  • You can’t keep up with regulatory requirements. You need HR experts that understand local and national laws concerning employment and your business. If your current efforts can’t keep up or you’re looking to expand to another country, consider getting an HR outsourcing agency to help.
  • You don’t have an HR self-service portal or help desk. Your employees should be able to access their benefits, retirement plan, training modules, and other pertinent information by themselves. An HR provider can help you set up a self-service system and even provide a remote HR help desk.
  • Your current HR system doesn’t support global, remote working. If you want to have a remote team, you need HR professionals who can support it.
  • Your whole HR team focuses solely on administration. If your current HR staff spends most of their time on processing forms or data entry, it might be time to get some assistance. Your HR team should also help with employee assessment and engagement, recruitment and hiring, and other crucial aspects of your business.

Europe HR Solutions — HR Outsourcing for International Businesses

When your business expands and becomes international, your HR management gets more complicated — and more costly. You need an HR team you can trust, who can manage the regulatory requirements and save you money.

Europe HR Solutions addresses your global HR concerns and provides cost-effective HR expertise. For more than 20 years, we’ve been helping European and international companies save time and money with our outsourced HR solutions.

Contact us today to get a free consultation about our HR outsourcing.

Business owner surrounded by paperwork, indicating the need for HR outsourcing

How outsourcing HR can save money

If you own a small or mid-sized business, you understand how frustrating it can be to spend time and money on tasks that don’t generate revenue. The costs of building an HR department from the ground up can prove astronomical. 

When you’re launching your small business in a foreign country, especially, you’ll need HR solutions before you open your doors for daily operation. Europe HR Solutions can help.

 

The right outsourced HR team can reduce your ongoing costs in the following ways:

  • Payroll administration:

By outsourcing your HR, you can bring in vetted professionals to set up and administer your payroll system. This team can train you to ensure a seamless transition after their service contract is completed. 

You won’t have to stress over hiring long-term employees to take care of payroll, or training payroll administrators.

  • Benefits implementation:

Your outsourced HR team can help you to select the right benefits software package and enroll the employees of your small business.

  • Human resources management:

Outsourcing your HR can prove to be a game changer for your overall human resources management, too. HR consultants contribute through a wealth of experience in compliance, employee relations, and recruitment.

This saves valuable time for small business owners, mitigates the risk of legal issues and delays in operations, and provides access to the latest industry best practices and trends.

When it makes sense to outsource HR for small businesses  

International companies with fewer than 50 employees are considered small businesses, and rarely expand to Europe with an inhouse HR team already in place.

For US and UK-based small businesses that launch European operations, there’s usually a CFO who oversees broad HR tasks. 

However, the CFO or other executives managing HR for a small business launch in Europe often lacks the country-specific legal and HR expertise necessary to ensure innovative solutions that reflect the country’s best HR practices and legal compliance.

It’s important to consider the following when determining whether or not you should outsource your HR:

  • What specific HR services and support does your business require?
  • Do you have anyone on your team who’s well-versed in country-specific employee regulations and labor laws?
  • Will you need management compliance training and support?
  • Will your current employment handbook, policies, and procedures translate to adhere to the needs of employees in different countries?
  • Do you have a small HR department in place that may need help implementing payroll, benefits, training, and development?
Time is money. Outsourcing HR saves time, letting you focus on what matters.

What to expect with Europe HR Solutions

By outsourcing your HR, you may find it’s easier to take care of your daily operations and to strategize and prepare for the launch of your small business in Europe. Europe HR Solutions has supported countless small, mid, and large-sized businesses in their international HR needs.  

Whether you need our team to manage your HR and implement solutions, or you need us to help guide the HR professionals you have on staff, we can sweat the small stuff to ensure your big picture remains intact. 

You can expect Europe HR Solutions to do the following:

Act as your representatives:

We’ll act as an extension of your small business. This means we will collaborate with you and ensure we’re promoting your vision and standards in any HR matters we handle for you.

Ad hoc requests:

We understand that you may have ad hoc requests. We’re used to fast-paced, high pressure situations, and will ensure your needs are met in a timely manner.

Assist with HR strategies:

We’re committed to providing HR services that help your business grow and succeed. We’ll make certain that the innovative solutions we offer adhere to your overall business and HR strategies.

Create and implement policies and procedures:

We’ll strategize with you to create and implement your company’s policies and procedures and ensure details are in place that will help your employees thrive and create a positive work environment.

Handle employee contract needs:

We’ll help to create and manage your employee hiring processes (including talent acquisition, interviews, and onboarding checklists), employee complaint procedures, performance reviews, and off-boarding processes.

Legal compliance:

Europe HR Solutions will use our thorough knowledge of the various nuances in employment regulations and labor laws to keep your operations, policies, and procedures within legal compliance. This will help reduce your liability risk should issues with employees arise.

Manage employee and management training and development: 

We can cover government-mandated and specific position training programs to support your employees to work with excellence and grow in their positions. This includes compliance training for managers.

Recruitment: 

We can utilize the latest in talent acquisition trends and industry best practices to make sure you attract the talent you deserve to fill your staffing needs. We want to help you to build the best team possible to create a positive work culture and  a productive team.

The cost of outsourced HR services for small businesses

When to outsource your small business’s HR could be determined by your available budget. The cost of outsourcing your HR may be an upfront expense, but in the long run, it can save you significant money and protect your revenue.

The services offered by Europe HR Solutions can vary in cost, and are dependent on the extent of service you require. We can determine the cost based on the scope of the project.

For example, you may need us to manage a specific, well-defined project that allows us to estimate the cost involved. However, you may require our services on a daily basis, for an extended period of time, or find you need support in an immediate HR emergency. This may mean we will need a retainer payment or charge for an hourly rate.

How to determine your HR outsourcing needs

Before you decide to outsource your HR, it’s vital to determine what type of services you require. It can be overwhelming to discern your needs, but reflecting on and strategizing about specifics can be beneficial.

Answering the following questions may help you to understand what services you require:

  • Do you need an outsourced HR professional who takes the time to know and understand your business, staff, and culture?
  • Do you need HR professionals who are available on a daily basis?
  • Are you in dire need of help with critical talent acquisition?
  • Do you require flexibility and a large scope of HR tasks?
  • Are your needs limited to legal compliance and knowledge?
  • Do you need help developing your workplace culture?
  • Do you need to overcome language barriers?
  • What are your long-term HR needs?

Other benefits of outsourcing your HR

Once you’ve determined when to outsource HR for your small business, you may find that it allows you to streamline your operations and focus on your overall business strategy.

This strategic move reduces your administrative burdens of managing payroll, benefits, and other HR tasks in-house. The cost-effectiveness of outsourcing becomes evident as it eliminates the need for investing in HR infrastructure and ongoing training. 

This newfound flexibility can enable your small business to adapt quickly to market changes and allocate resources more efficiently. Ultimately, an outsourced HR team becomes a strategic partner, and empowers you to prioritize your employees, enhance organizational efficiency, and thrive in the competitive European business landscape.

Contact Europe HR Solutions

Europe HR Solutions understands how crucial HR is to the foundation of any successful business. We can consult with you to determine when it’s best to outsource HR for your small business, and customize innovative solutions with you. 

Your HR needs remain our greatest priority, and we want to support you in ways that promote legal compliance and allow you to see your small business dreams come to fruition. 

Connect with Europe HR Solutions today for a free consultation and be sure to check out our blog for the latest HR insights, tips, and trends. The road to success for your small business is just an HR step away.

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    Author

    Inez Vermeulen

    Inez Vermeulen

    Inez Vermeulen is the Founder and CEO of Europe HR Solutions, with over 25 years of successful corporate and entrepreneurial experience in various global industries. She has helped grow and expand the European divisions of global companies such as Coca-Cola Company, Regus, DHL, American Medical Systems, etc. Inez has received several company awards for her entrepreneurial spirit and success.

    She owns a Bachelor’s degree in French, History and Latin, several HR global expert certifications, a Master’s degree in Metaphysical Sciences, ICF Coach Certification and has completed her Doctorate on Transformational Leadership. Inez is fluent in Dutch, English, French, Italian and German. She works in partnership with an extensive international network of independent & professional companies and resides in Belgium near Brussels with her husband Jan.