The Advantages of Outsourcing Your HR Team

The management team might be the main characters in a company but it must be remembered that the Human Resource team is the backbone a company. Great companies can only be built by having a solid team of people managing it. Managing a company isn’t easy as it requires so many different types of people with multiple types of expertise to make sure that the company goes in the right direction.

When it comes to finding those right people to be put in the right places, the individuals responsible for making that happen would be the Human Resource team or the Talent Acquisition team. In this article we want to take a much deeper look to the age old question of having to outsource your HR team or do you hire your own personal HR team to work from inside the company?


Let’s look at the advantages of outsourcing your HR team and in another article, we will then also look at the disadvantages of outsourcing your HR team. However, we will first focus on just how beneficial it would be to outsource your HR team and the benefits it will bring to you and your company.


Before that, we would like to look into what the HR team is used for in an organization. The department is usually used for a variety of reasons. They oversee things like employee payroll, hiring and firing as well as the benefits that come along with employment. They help the management maintain legal files and also help keep the office in order for the rest of the company.


Some of the benefits of outsourcing these duties are :


Benefit 1 : Cost Savings


When you outsource, there is a great chance of you being able to reduce the cost of maintaining the expenses used by the company for the people in the company. For example, hiring people will cost money for the company, but if that budget it handled properly and used in the right way, you would be able to see yourselves saving money in the long run. If you have a much smaller company it would be a lot smarter to just hire a team to do it on your behalf. It would cost a lot lesser than hiring a full department of HR executives.


Benefit 2 : Bettering Your Risk Management


By using an outsourced company, the people you engage with will be able to help your business minimize your risk. Since our laws and employment policies vary from time to time, having a team that is constantly trained and up to date with all the latest policies, will prove to be useful for you in the long run. This way you would not have to constantly remember to train your team every time something new happens. In addition to that, to be a fully-fledged and certified company, they would need to hire only the best HR executives to maintain their track record, this way you can be rest assured that you will be getting the best team to help you with your HR problems.


Benefit 3 : Increasing Efficiency


If you hire the right team, you can be rest assured that the levels of efficiency in your company will greatly increase. This is because your dedicated account managers will ensure that your ticket is always taken care of by them. There will usually not be any delays or problems if you have a dedicated team. Plus, as an established company they should always already have the best software and resources to ensure that your work gets done properly. This is great if you don’t have the resources to do it in the first place.


Outsourcing might be a scary thing to do, especially for sensitive things like payroll and HR related matters, but every company that you engage with will usually have to sign a non-disclosure agreement, so your sensitive information should always be safe in their hands.


As part of the SSM’s efforts in bettering the way we report in Malaysia, the MBRS tool has been introduced. If you want to train your team of HR executives to understand how to use it, you can join our workshops and g

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