In an extremely fast-paced and competitive world, the best companies leverage staff outsourcing as a strategy to drive scalable growth and free their HR professionals to focus on delivering the best results in their core areas.
Securing the best talent can be daunting for HR professionals, and not getting it right can impact the organisation’s success. For this reason, organisations must comprehend and approach their employee outsourcing or talent acquisition process strategically.
One thing that high-performing businesses have is a great team. So, whether you are recruiting full-time or part-time employee, trying to fill a capability gap in your organisation, reduce operating costs or maybe just striving to mitigate the risks that come with hiring, how you go about it is extremely important. In the long run, your approach will determine your business result.
People Outsourcing is one of the four major types of outsourcing. It is a practice many companies deploy to get top talents without getting involved in the process of sourcing and selecting. It allows companies to focus on other essential tasks that increase revenue by outsourcing employee services.
Employing external resources to perform select HR functions like payroll management, background checks, employee onboarding, and talent management services is a growing trend. It has become a common practice in the workplace; it then begs the question, when should you outsource staff? At what point should you consider outsourcing some of your HR processes in your organisation? Do you need to hire a third-party firm to outsource your staff or keep the responsibilities with your team?
In planning an organisational workforce culturally fit for the future and closing technical and behavioural gaps, an ideal outsourcing partner can make your business processes easy, quick, and effective. Engaging a third-party/professional entity to oversee select HR functions -such as talent acquisition processes- has potential benefits and significant implications on the business; it relieves you of some mundane tasks and helps you focus on higher-value activities.
Organisations engage external workers to reduce operational costs. We can call this staff outsourcing; it is a practice that cuts across several industries and institutions. Also, mid-size organisations with no legal entity take advantage of staff outsourcing.
It is a great way that organisations deploy to promote flexibility, enhance cost-effectiveness, increase organisational performance, drive productivity and ultimately maintain high-quality service. However, as the business world continues to evolve and become highly competitive, it is up to you to gain control of your operations by employing outstanding talents through employee outsourcing to achieve your business goals.
To help you come to the right conclusion, in this article, we have included some key indicators that outline when you should consider staff outsourcing or a third-party administration of your recruitment or staffing process.
When should you consider Outsourcing your Staff?
Companies want to outsource activities and responsibilities since the external worker tends to concentrate on a single task -usually, their core- at a time and can thus perform a job function better, faster, and cheaper. Here is why organisations should look to outsourcing staff:
- Reduce operational costs:
For many businesses, the cost is the primary motivator for outsourcing. Personnel outsourcing allows businesses to accomplish projects without using up all of their financial resources on hiring new staff and onboarding them; a company can save up to 70% on its overall staffing costs as a result of outsourcing staff.
Companies incur a lot of financial loss when they make wrong hiring decisions. For this reason, you should outsource or use a third-party entity if you want to minimise or avoid losses from hiring the wrong candidates.
- Share business risk:
In addition to reducing costs, outsourcing eliminates some challenges of maintaining staff and expenses associated with employment, including those related to law, hiring, compliance, taxation, health care, regulatory requirement or obligations, and office administration. So you can consider outsourcing when you want to share some or all of these operational risks.
- To focus on core business:
You should consider outsourcing employees when you need your team to concentrate on the crucial internal operations or areas of your company rather than the tedious and time-consuming aspects. By outsourcing the mundane and small tasks, you can give your attention to other high-value tasks; as a result, your business can run more efficiently, ultimately increasing your return on investment (ROI).
- To access intellectual capital:
The fast-paced business world is constantly searching for employees with excellent soft skills and technical capabilities; Does your competitor have better capabilities than you? Then you should consider outsourcing if you need to attract more potential talents in the global market to ensure customer satisfaction and competitive results. All businesses find it challenging to secure exceptional employees. Nonetheless, when it comes to outsourcing, you’re not restricted to local candidates; you have access to a pool of specialised talent which you can have the opportunity to select high-potential candidates from. You might not get this same specialised talent in-house.
- Responsive back-end operations
Back-end technologies can benefit and impact your business significantly. Hence you should consider outsourcing as it gives your employees access to certain technologies, they usually may not have had access to. Some of this technology includes field management software programmes which are helpful for adequately managing and tracking field teams and geographically dispersed workers.
Employee outsourcing is a very efficient, long-lasting, and sustainable technique that aids businesses in increasing both their productivity and quality of service. As you decide to outsource other time-consuming, repetitive, and less specialised functions to concentrate on the core areas of your business, a reliable outsourcingpartner can assist you in achieving your business objectives with great benefits, improve sales performance, and boost your bottom line. Workforce Group, through their passion and depth of expertise in the outsourcing process, has worked with various organisations across various industries to set up thousands of talent who have become a foundation for the success of their organisation. You can also get started and guarantee your win in the marketplace.