4 Situations When You Should Consider Outsourcing Your HR Needs

To outsource or not outsource? Often, that is the question.  

There are a number of situations that might prompt the question of whether to engage an outside company for HR functions such as recruitment, training and payroll. Perhaps your time’s being drained managing HR requirements. Perhaps you’re deliberating about hiring another internal HR professional. To help you decide if managed HR services are right for you, let’s look at four of the most common situations that lead to Australian businesses outsourcing their HR activities. 

Situation 1: Your HR team spends a lot of time on administration. 

If you do have an internal HR team and they find themselves spending lots of their time on administration, then it’s time for a change. Not only is this wasting your resources, but it can also lead to staff frustration and turnover. There are typically two options: one might be to upgrade your HR systems and processes to streamline your HR functions, and the other is to outsource these functions to free your HR team up. If you know there’s an issue but you don’t know where to start, then developing a HR strategy session is the ideal first step. 

Situation 2: You’re looking to save money and resources. 

This is a big one. For many growing businesses the first instinct might be to develop their internal HR team, but there are also the costs of training, retaining and getting the best out of these team members. In many cases, outsourcing can provide far greater value and free up both capital and time that can be spent elsewhere in the business. Outsourcing can also give you access to an entire agency of HR expertise across compliance, recruitment and more; expertise that can be difficult to find in just one or a handful of HR professionals. 

Situation 3: You’re unsure about meeting regulations and compliance requirements. 

Organisations of all sizes can struggle with compliance and regulations. Employment law can be a complex area, encompassing discrimination and harassment, the Fair Work Act, industrial relations and health and safety matters. Compliance is even more rigorous in sectors such as healthcare and disability. Even if you’re internally managing compliance aspects, there’s often that niggling feeling that perhaps you’ve missed something important. Working with the right outsourced HR agency can provide peace of mind and confidence that everything is covered.  

Situation 4: You’re wanting to attract and retain outstanding talent.  

Attracting the right team and keeping them around involves different skillsets and considerations. It takes a comprehensive strategy to ensure that you can find and retain quality staff, and the benefits of successful employee relations can be tenfold when you factor in the costs of a disengaged team or high turnover. Not only can HR outsourcing transform your recruitment and retainment strategies, but these external services can also help you to improve the engagement and performance of teams. 

While it might seem counterintuitive at first to outsource crucial HR functions to an outsourced provider, the advantages can be a more tight-knit, productive, engaged and goal-driven internal team. PerformHR can help you to develop a customised HR transformation roadmap to suit your unique requirements, as well as providing HR outsourcing in Perth, Sydney, Melbourne, Brisbane and Newcastle. It’s easy to get started.