Running a small to medium-sized business is not easy as every matter seems to need your attention. However, as a business, you have to generate continued revenue and profits, and spending more time than necessary on non-core functions can be frustrating. For many businesses in this situation, the answer is to outsource in order to offload work that isn’t part of their core business. Outsourcing can give you access to expertise and resources while saving costs in the long term.

But when does it make sense to outsource your Human Resource (HR) functions and what exactly to outsource?

WHEN TO OUTSOURCE?

What’s typically being asked is “when to outsource the HR functions?” A general rule of thumb is “when the administrative matters begin to slow down your company’s productivity”. Another way is to look at the expense per employee.

According to the Singapore Human Resources Institute, companies with a headcount of up to 50 should consider outsourcing. This is because some of these companies may not have the expertise to fully understand and comply with employment laws. HR solutions companies can help plug this gap.

HR outsourcing also comes in handy for companies who want to increase productivity by handling only specific strategic HR tasks. To them, it is far more efficient to outsource so to reap economy of scale while leveraging the professional expertise and resources to better perform the functions.

What to outsource?

WHAT TO OUTSOURCE?

Next, it is important to establish “what to outsource?”

First, you will need to consider the nature of your business and then assess the talents of your employees. It is a matter of identifying which tasks that your HR team should focus on to most effectively realise your company’s strategic priorities and outsource the rest to external HR solutions companies. For example you may want to keep certain data and key HR strategic initiatives in-house and outsource process-driven tasks like payroll.

HR solutions companies offer services ranging from payroll, benefits administration and recruitment to staff development and training. You can pick and choose what you want to outsource. Most important is that you take the time to determine which services you want to outsource and look for a HR solutions company that meets your needs. Always remember that it is the increase in value that matters when you determine whether or not to outsource.

WHERE TO OUTSOURCE?

It is always not an easy decision to outsource some or all of your HR functions, but it is sometimes a necessary step in order to bring more focus back to your business. Once you decide to outsource, you can consider a reputable and trustworthy company that specialises in HR management for small and medium businesses, and receive up to 70% funding from SPRING Singapore for qualifying costs*.

enable Consulting is one of the Approved Service Providers for HRSS by SPRING Singapore. It is also one of the first few local HR solutions companies to offer clients a CRM system, enableLink, that provides them with greater efficiency and improved workflows. enableLink users can access contract details, audit trail of past questions, attach screenshots for efficient issue resolution, and obtain seamless support from their consultants. With its proven track record and experience in enabling SMEs drive HR success, you know your business is in good hands.

* Conditions apply for funding support and for more details, visit SPRING Singapore’s website.