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Outsource: Why Should You Do It And How

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As a business owner, especially as an owner of a small start-up or a developing company, you might definitely agree with the fact that certain core business activities take important time away from your more important activities. That said, it is not as if you can avoid or rush through these processes, as they often involve your employees and customers’ needs. What are you to do in such a situation? Often, the answer is in outsourcing: the act of delegating specific activities to third parties external to the business.

 One of the most commonly outsourced processes at the moment is human resource management. If you simply search the term ‘HR consulting Hong Kong’ you will find a number of companies specializing in this specific process in your locality. The reason as to why the human resources department is often delegated to an external company is because of how extensive and painstaking its procedures need to be: the legal compliances and regulations related to employer-employee relationships, employee rights and other related fields are growing daily, and most companies often do not have the time or expertise to keep up with their changes; likewise, human resources is not easy to automate as a process, because the needs of each employee are often specific, and require a level of understanding that computers and AI have yet to reach. These, and a multitude of other factors, have led to many start-ups and small businesses preferring to hand over their HR department to more specialized companies, often at a lesser expense than what would incur in-house.

 To begin with, you need to understand your own requirements: there are different levels of outsourcing, and the same applies to HR. Companies that manage to perform a number of human resources-related processes within the company would prefer to leave specific processes such as right payroll tax to third parties (in this case, help desks would be a good idea). On the other hand, there are other companies which would prefer to outsource most of their activities (Administration Service Organizations let you retain the employer title whilst dealing with most processes), and others would prefer to outsource their entire department (Professional Employer Organizations are your best bet in this case; keep in mind they will share the employer title with you in this case).

 Understanding your needs and finding a company that matches your needs is not the only preparation you should be doing ahead of outsourcing. In fact, an important part of the process is preparing the company internally for the transfer: ideally, you should be providing detailed explanations to the company about your work culture and policies, whilst also informing every employee about the changes that will take place, and how both companies will deal in the interim.

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