• Andrew Godson

5 Top Reasons Why You Need to Outsource HR


5 Top Reasons Why You Need to Outsource HR

The HR department has become more complex in recent years compared to the past. In the bygone years, there was only hiring, firing, working on payroll, and solving out the occasional conflicts. But recently, it has grown increasingly to be more of a challenge. Companies need to focus on achieving business growth, not spending the entire afternoon working on payroll glitch on conference calls. This is why most companies opt to choose HR outsourcing. Here are 5 top reasons why you need to outsource your HR.


1. You will Save Money and Time

According to the study published by The Society for Human Resources Management (SHRM), 26% of companies outsource HR to save money. When you outsource HR, you will be able to cut costs on e.g. office space and payroll, while your company continues to focus on its core business strategies. With outsourcing, you can expect to save approximately 20-30 percent compared to keeping all of your human resources functions in-house. This will also give you the peace of mind knowing that all your HR duties are being handled by multi-disciplined experts.



2. Outsourcing Will Improve Your Company's Recruitment

Hiring top talent is not an easy task that any HR department can comprehend or have time for. It requires an experienced HR who can carefully move from a job posting to an interview, to hire proper talent with much accuracy. As a result of having great talent, it will enact your company’s retention strategies, and experiencing an enhanced work environment. Study shows that up to 14% of companies who outsource HR have enjoyed a lower turnover rate. This is because the better candidates are matched to jobs the happier the employees are, the longer are they going to stay in the company.



3. Company Will Be Able to Focus on Core Competencies

HR functions consume a lot of time and energy on tasks that are not the primary focus of the organization. Some human resource issues such as hiring, firing, statutory compliance, and performance management can arise quickly and take weeks to resolve. When you outsource, the company will be able to focus on your core competencies without compromising on the HR services. Research shows that businesses that outsource can grow up to 9% faster in the large part because the executives and managers have enough time to focus on their core competencies.


4. Better Access to Technology

Access to technology and best practices is one of the immense reasons to outsource HR. The experienced HR service practitioners will know how to exploit the latest trends and technologies for analytics, data mining, and social media that will help them to meet organization-specific needs. They understand where the trend and technologies are going, what the best practices are for every HR function, and stay apprised of any changes in laws or regulations that affect them. By outsourcing them, your company will be taking advantage of these trends too.


5. Improve Statutory Compliance

Every company has to comply with Tanzanian laws and regulations. Some enterprises in specific industries, for example, finance and manufacturing industries, have to comply with many regulations, and failing to do so can have serious and expensive consequences. This is where outsourcing HR comes to the rescue of your business.

An outsourced HR service comprises experts who are knowledgeable in Labor Law and Statutory Compliance rules, even in specific industries such as manufacturing, construction, telecommunication, NGOs, finance, engineering, and SMEs. They will offer you peace of mind that your company will be in compliance with all applicable HR regulations at all times.

Evolve People Solutions is your local Outsourced Human Resources Business Partner capable of making a difference in your day to day operations

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