What’s exactly is HR outsourcing? Simply put, it is using a third party’s employees to do your non-core business activities, such as administration, accounting or even social media management.
Growing your business is challenging, however, it won’t matter if your profit remains the same despite major business growth. In fact, boosting profit margin has always been a priority of the executives. To increase the profit you can either increase the price or reduce your costs and expenses, the latter seems like a preferred method. But what can you do to lessen the expenses, while making sure that your employee benefits and service quality stay the same?
HR outsourcing might be what you’re looking for.
Below are some examples of how outsourcing can help maximize your profit.
1. Let your team focus on the core business
One of the biggest benefits of HR outsourcing can give you is the releasing non-core tasks from your employees. For example, you can outsource your monthly payroll to a highly qualified team of experts without having to worry about the change or miscalculation the SMUI (social medical unemployment insurance) and PIT (personal income tax). These experts will not only take care of your monthly payroll but also keep you updated on any changes in local regulations. Another occasion is when you need to ramp up your sales or promoter team very quickly and would like to select the highest quality ones, partnering with a specialist in sourcing and managing this workforce can have an instant and significant improvement in your revenue.
2. Growing your business strategically
Scaling and expanding business often requires two things: the right pace and of course, money. Growing too quickly can be necessary to match business demands, but without good preparation, your infrastructure will collapse. This is exactly where outsourcing can help you, by minimizing risks and liabilities. Testing the water by outsourcing one function at a time – whether it be customer service, IT or marketing, and research. This can help you achieve the growth you aim without having invested heavily on equipment, training time and hiring experts.
3. Operation and compliance costs saving
Let’s take a minute to think about all the expenses (including time) needed to build a strong team, from recruiting, persuading to training. At the time, you think it would be worth it to find the perfect fit for your team until they leave you one year later, and you have to start the whole process again. Also, a strong outsourcing provider is often an expert in labour compliance, so you can rest assured that your employees’ benefits and incentives are taken good care of. Outsourcing will make sure that you get the best talents – who are the experts on the function - within the shortest amount of time.
HR Make sure that the partner you’re working with is the perfect fit for your business, not only in the pricing but essentially, the service quality. In case you’re still wondering, don’t hesitate to get the best consultation and support from our consultants at Adecco Vietnam.