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4 Signs Your Business Needs HR Outsourcing

by: Sidney Liquigan

Thursday, March 14, 2019 |

Many businesses, especially startups and SMEs, only have a few people running the operations—sometimes even run by only one entrepreneur. And more often than not, these people are not human resource experts and are more skilled on the business side of things.

At first you may be doing okay handling and taking care of your people; but in the long run, handling the complex HR process from recruitment, onboarding, and training up to payroll, benefits, and other employee programs can get overwhelming and may affect other parts of your operations.

Here are the signs you need to look out for to know when it's time to outsource your HR.

Difficulty in Keeping Up with Employment Regulations

Employment regulations and requirements always change or get updated, and non-compliance can result in fines or and legal issues. Despite having in-house HR staff, it can still be overwhelming to stay on top of these, especially if you are planning to expand to other places or countries. Outsourcing to an HR outsourcing provider ensures that you have a dedicated outsourced HR team that has extensive expertise in employment laws and other HR matters. Outsourcing companies that offer HR outsourcing also have the right, up-to-date resources and technology.

Cost Cutting

Outsourcing non-revenue generating operations, such as back-office functions like HR, is cost effective and brings efficiency to your business. The costs you will get to save will not only come from overhead and infrastructure expenses, but also from the technology and streamlined system that the outsourced HR provider offers. Having an all-in-one, centralized HR information system simplifies processes, thus improving productivity.

Growing Business

Part of the growing pains of a business is the struggle to keep it together while keeping up with the increasing demands. Instead of dedicating your time and energy to coming up with strategies to keep the momentum and improve it even more, you're stuck with HR functions such hiring more people, processing payroll, and more. Growing businesses can benefit from outsourcing their back office functions, including HR. Not only you get more time to focus on your business' bottom line, but you also save on costs so you can allocate more money to core operations.

Inability to Attract and Retain Employees

Talents will be more encouraged to apply to your company and stay longer if you provide a comprehensive benefits package as well as satisfying employee management and engagement programs. Your HR outsourcing partner has all the skills and resources to take care of these for you. It's also important to nurture your employee's development. HR outsourcing services include Learning & Development (L&D), which could help you tailor and deliver training programs for your employees.


MicroSourcing offers end-to-end recruitment and HR outsourcing services, from talent acquisition to talent management and retention.

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