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Top 7 Questions You Need to Ask When Outsourcing HR Services


Enable Group | May 18, 2022

For Employers ● 3 min read

Employees will always be the most valuable asset any company has. Regardless of the number of employees a business has or its structure, an enterprise will need the right set of people to keep the organisation afloat.

For small businesses, hiring a dedicated team to perform HR functions can be costly, which potentially can be spent on other more critical aspects, such as revenue generating positions and equipment. By opting to outsource HR services in Singapore, a small to medium-sized company will be able to take advantage of an agency’s expertise, technology, and other resources. A start-up enterprise can make use of the different HR services, such as recruitment, payroll, compliance and risk management, and compensation and benefits, that an HR partner can offer, thus saving them a great deal of time and money in the long run.

However, to ensure that you will succeed with outsourcing HR functions, you must first ask the following essential questions.

1. What kind of services do they deliver?

The primary functions of the HR department include recruitment, talent acquisition, payroll, counselling, and employee administration. Other responsibilities include compliance and risk management, compensation and benefits, performance management, and employee lifecycle development. These are the minimum functions that an HR partner must be able to provide.

2. How long have they been in the HR outsourcing business?

One of the key aspects to consider when looking for an agency partner is experience. You want to ensure that they have the knowledge and expertise to help you achieve your HR goals for your business.

3. What kind of metrics and reports do they provide?

A reliable vendor should be able to provide reports that show how outsourcing your company’s HR functions can be a good decision. This is extremely important as your company’s stakeholders will want to know whether their investments are getting the ROI they expect. Some of the most critical reports include job satisfaction rates, healthcare costs per employee, and revenue per employee.

4. What is their client retention rate?

As a business owner, you want to outsource your HR functions to a company that has good customer retention. This is a good indicator of how reliable an agency is and whether it can meet your needs.

5. What are the upfront, ongoing, or additional fees you need to pay?

To avoid any unforeseen fees, you want to discuss all the charges that your outsourcing company will charge before agreeing on a price. You will want to ensure all the necessary expenses are addressed in clear detail so that you can determine if you’re able to cover them.

6. How do they communicate with you?

A good outsourcing company to outsource HR services in Singapore would always keep up with trends and stay updated on current compliance issues. Your BPO partner should always keep you up to date on existing policies. One of the most valuable benefits of outsourcing is that you can focus on your core operations and not have to worry about being up to date with compliance or risk management.

7. What kind of contract does the vendor offer?

A short-term contract can adversely affect your business should the vendor refuse to renew the agreement. This can make your company unstable. On the other hand, a long-term contract is ideal to ensure that your business operations run smoothly until the contract ends. This will also give you ample time to look for a new partner if the vendor does not want or cannot renew the contract.


You need to partner with a company that has experience and knowledge, such as Enable Consulting, to help you achieve your goals.

At Enable Consulting, we designed our consulting services to help businesses succeed. Some of the services we offer include HR advisory and benefits, HR consultancy, and HR systems in Singapore. Get hold of us today to discuss your requirements.

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