Think forward, think Human Resources outsourcing

Outsourcing is no longer just a buzzword. As a business leader / decision-maker it is now more vital than ever before that you understand, and utilize the benefits of outsourcing. Despite the fact that many companies are thinking forward and outsourcing their products or services to 3rd party suppliers, other companies are still bias and precious about their structure and products.
If you are under-capacity, trying to cut operational cost or just need an additional service offering but don't want to incur the expenses then outsourcing is the proven answer.

Outsourcing non-revenue generating functions, such as Human Resources is a good start in deploying a global cost reduction strategy...see the cost comparison

Outsourcing benefits

• Risk management:

  When your staff does not perform to standard you need to follow disciplinary action and at worst let this staff member go and recruit his/her replacement - this process can take months and you also run the risk of being challenged by the CCMA or Labour court.
  When the same performance issue is considered with an Outsourcing company its as simple as finding another Outsourcing company, or making the performance/quality issue theirs to address.
  You could be cutting your Human Resources Department's Operational cost with 50%.
  
  

• Quality assurance:

  An Outsourcing company (i.e. Human Resources Consultants), is more likely to provide a better product/service than your in-house staff for the simple fact that the Outsourcing company is not part of your company culture and processes (or problems), but has to provide a high quality service regardless, which is governed by you, and Performance & Quality managed by its own Management based on your requirement.
  
  

• Cost:

  Compare the Cost-To-Company of one of your employees vs a similar service provided by an Outsourcing company. You'll find that you don't have office space or infrastructure cost, no additional benefits costs like medical aid, parking etc. no cost whilst a staff member is on maternity leave or on strike, and no salaries or retrenchment payout's during an unexpected economical crisis etc. - hence by outsourcing you only pay for the direct service or product, no hidden or unnecessary costs - Cut Human Resources operational cost, it's a good start...more