What are the Benefits of Outsourcing your HR Management?

Tom McCarthy Category-01


As a business owner, a top priority should be ensuring all aspects of your employees work-life are handled in a way which ensures both the welfare of them and the improvement of your business. We know it can be hard at times to juggle both management and the nitty-gritty in dealing with employee issues, administrative work and other HR-related stuff which can eat away your time in the office.   

Whilst Human Resource Management is a core element of every single business, it is now even easier to handle the annoying stuff like Payroll, Workplace Health and Safety, and the inevitable employee that is not performing to expected standards. This can be done by giving the responsibility to another team of people to take care of (sounds good doesn’t it).   

More recently, many of you may have probably noticed that internal Human Resource Departments in organisations are shrinking dramatically. This is because more organisations are choosing to take a new approach to HR and outsource their own Human Resource Management team.  

According to a study by the American Management Association, Human resources is the second most likely corporate business function to be outsourced. This common practice is freeing up time and increasing productivity at many businesses.   

I’m sure you’ve heard some of the amazing reasons why outsourcing HR is the new way to do business, but if you haven’t that’s okay. Now you can read below the benefits that outsourcing HR can bring to any business.   

Advantages of HR Outsourcing 

IMPROVES YOUR TIME MANAGEMENT   

When you choose to outsource your Human Resource Management practises you are freeing up time to focus on other priorities of your business. You can leave all aspects of your employees’ employment life cycle in the hands of professionals, meaning less stress and responsibility on you. As we know admin work can be boring and time-consuming, leave this to someone else and dedicate your time to strengthening your business capabilities.   

COMPLIANCE WITH EMPLOYEE LAW / RISK MANAGEMENT  

With Employment Pay Rates, Acts and Workplace Health and Safety laws updating all the time, it is beneficial to have an expert keeping up to date with all these changes. It can get confusing remaining compliant with laws that relate to your business, and unfortunately, some people do not update their business practices in accordance with these laws. This costs many businesses lots of money in fines, as well as the stress that comes with dealing with a lawsuit.   

To prevent this, outsourcing HR specialists can result in reducing the headache of dealing with issues that can arise from legal disputes.  Your HR representative will stay on top of these matters and work with you in reducing your risk of legal issues arising in the future. This will also ensure your business is compliant with the correct awards, and paying your employees accordingly.   

COST EFFECTIVE   

In house, Human Resource Management teams can be expensive once you factor in more wages and salaries, which most businesses can no longer afford.   

Outsourcing a HR team can help reduce some of the costs that come from having a full-time team at your organisation, that you need to pay for. Not only will your wages potentially be reduced, but with the added benefit of having experts ensuring you’re compliant with all updated laws, you avoid fines and added legal fees.   

ACCESS TO MOTIVATED HR SPECIALISTS   

One of the best reasons to outsource your HR is having constant access to specialist HR advisors. Our priority is the employees, your organisations –  human assets. They will take care of every stage of each employee’s lifecycle. It begins with the recruiting since they are specialists they know what candidate is best for your business. This can help improve your workforce by having the best people on the job.   

They will also take care of the training and development for you, conducting performance reviews as regular as needed, as well as dealing with any employee questions or concerns. Your outsourced HR team can provide you with feedback identifying the positives of your team, as well as offering advice on improvements that you could make to benefit the employees at your business. 

If issues arise surrounding an employee, which we know is inevitable in any organisation. The HR team can advise and deal with the situation, knowing the best course of action to take. Alleviating any stress and worry that you have.   

It is good to take some time to consider which source of HR would best be beneficial for your kind of business. The many benefits of outsourcing Human Resource Management may assist in creating a better overall environment at your organisation, which of course is every manager’s dream.    

 Still, wondering if you want to outsource your HR services? 

If you still have questions or wondering when or how you can join the many others in outsourcing your own businesses Human Resource Management, get into contact with someone that can adequately answer all those concerns. Like us, HussetHR! We are one of Melbourne’s leading providers of HR services. Please feel free to phone call or send an email. We even have FacebookInstagram and Twitter! Comment, tweet or like if your more of the social media type 😉