Is Hiring or Outsourcing HR Better for Startups and SMEs?
The one question that many startups and SMEs struggle with is whether they should be hiring or outsourcing their HR requirements.
When you’re a new business that hasn’t turned a profit yet, should you really be spending on outsourcing services? Especially when you have a limited budget to work with? This guide is here to answer those questions.
Is Hiring Or Outsourcing HR Services Better?
HR outsourcing is a contract whereby a business owner hires a third-party company to manage some or all of the company’s human resources functions. 3E Accounting is an example of such a service.
Some tasks that are undertaken by these outsourcing services include HR functions like payroll processing, employee benefits administration, and other business needs unrelated to day-to-day company functions.
Knowing When It Is Time to Turn to Outsource Services
The struggle of deciding whether hiring or outsourcing HR solutions boils down to what you want to achieve for your business. Let’s look at some of the benefits that you stand to gain by outsourcing:
It Saves A Lot of Money In the Long Run
As a new business, there is a lot on your plate to deal with. Even established businesses have so much to juggle on a daily basis. That is why you need help. Outsourcing your HR functions means you only pay when you need the service. As opposed to hiring a full-time employee that you have to pay every month. It helps you save money. Yes, you will have to pay to outsource your HR tasks, but your annual HR outsourcing bill will be far less than the average in-house HR employee salary.
It Will Save You Time
If you can’t afford an in-house HR department, someone in your company will have to handle all of your HR duties unless you outsource them. When you hire a third party, the employees who previously handled those responsibilities will have more time to focus on their primary responsibilities. As a result, your company’s productivity and efficiency will almost certainly improve.
You Maximise Your Efficiency
When you are preoccupied with day-to-day HR processes and tasks, it can be difficult to focus on long-term business strategy. As a start-up, neglecting this step can spell disaster for your business. With HR outsourcing, you can delegate day-to-day tasks such as payroll, check processing, insurance claims review, and benefit administration, allowing you to focus on the big picture of your business.
You Get to Hire A Team of Experts
Working with an HR outsourcing company, such as 3E Accounting, that has comprehensive, in-house expertise reduces the risk of noncompliance. You will also have access to a dedicated team of HR and back-office administration specialists who understand the HR industry and can assist you in staying on top of laws and regulations that affect your business and industry.
3E Accounting is Singapore’s leading firm when it comes to all things related to Singapore Incorporation Services. This includes HR Solutions. Connect with us for all your company incorporation needs and more.
