The myriad reasons why enterprises should outsource their Human resources to external consultants


The Human Resources department is typically considered to be the real world epicentre for myriad employee and recruitment related activities in just about any sort of business entity that has more than a few employees, at least.

Some of its more important functions include payroll related benefits, firing, hiring legal complexities, training and development, orientation of new employees and many other vital aspects that have to be dealt with, by the HR department on a day to day basis. While this key department does not by itself actually produce any specific product per se, it nevertheless seamlessly contributes to a great extent towards overall employee well-being as well as legal security.

As a traditional concept, the in-house HR department, has always enjoyed centre stage. But that was then, and this is now and as of today, there is an increasing trend to move away from the recent past and set about exploring the various avenues towards the outsourcing of this department. As a matter of fact, many if not most small and medium firms are also opting to outsource with various companies such as either a few or alternately all the functions of an HR department due to a variety of reasons. Let us explore a few of them in some detail.

It leads to a substantial reduction in overall costs

The age old cliché “a penny saved is a penny earned” comes into play here to a certain extent. The fact of the matter is that outsourcing has the potential to save the company a whole lot of funds but without in any way, sacrificing the overall integrity of the day to day operations of the company.

 A substantial improvement in Business Focus

One of the single biggest obstacle that an entrepreneur faces inthe handling of the more essential aspects of running any sort of business is the lack of ability to retain focus. When one is concerned more with ancillary functions, then the core functions of running a business and extending its scope might end up getting ignored in the long run.

Lack of quality manpower

It is not always easy to hire the right ‘man for the right job. As a matter of fact, few people have the ability to handle complex tasks simultaneously. Those who are capable enough, end up joining professional HR outfits. It makes more sense to go to them than trying to lure them to the company, itself.

Batter risk management

If the company handles all of its own payroll and compensation related work, then should anything go wrong then the tax authorities will hold the company directly responsible for the same. The fact of the matter is that should you be doing your very own paperwork. Then you will, of course, be held directly responsible for the same. Letting an external consultancy take care of the work will essentially let you off the hook.