The human resource department deals with various tasks like talent acquisition, employee retention, benefits & compensation, employee records, payroll processing, and ensuring compliance with a long list of laws & regulations so that your company doesn’t get sued. Out of all these core functions, if your business were to compromise on any front, it would stand to lose out on its culture, scaling capacity, retention of talent, and more. Since neither of these is something any business would stand to lose, how do businesses with tight budgets manage to get it done?

It’s simple, they outsource it to third parties, and here’s why. It’s a competitive world out there. Companies cannot afford to compromise on benefits or any other facilities and functionalities in this day and age. That is why having good HR in place pays subtle dividends in the long run. And to know how small businesses manage to get it done, we will need to learn how they are different from big conglomerates.

THE DISTINCTION BETWEEN WHITE-COLLAR BEHEMOTHS AND SMBS

The first and foremost thing that sets big corporations apart is the budget and resources they have at their disposal. Looking at the limitations faced by small businesses, the systems, resources, and scale of their operations are modest. These situations demand the HR personnel in SMBs to get creative in terms of employee retention, talent & skill development, benefits, recruitment, maintaining core values, and developing policies.

Some small businesses can’t afford to appoint dedicated people for specific HR tasks and processes. Such organizations don’t believe in single-skilled specialists. This is where generalists are preferred over specialists. In emerging companies, the company owner or the manager has to play multiple roles other than their core responsibilities and take up HR activities like recruiting, creating policies, and managing payroll. Now that the distinction is clear enough, the next question is: Are SMBs at a disadvantage?

Restricted budget and resources, along with other constraints, may paint a negative picture of small businesses, but it cannot be farther than the truth. SMB’s may not have significant retirement plans or a long list of benefits for people to choose from, but people still prefer to work for such organizations nonetheless. It is because they trade benefits for perks that are hard to resist. Perks such as flexible working, casual dressing, and mentoring opportunities compensate for goodies and other amenities that one might get in large corporations. In addition, most SMB’s ensure compliance to the mandatory laws & regulations by outsourcing the compliance and other HR processes to third-party service providers. This makes for a laid-back yet work-focused work environment.

CONCLUSION

In the long run, when it comes to HR management in SMBs and big corporations, both of them are practically the same story, narrated in different languages. Even though SMBs operate with tighter budgets and resources as compared to the big leagues, they simply get the HR work done by either a third-party or by repurposing their current expertise. Either way, HR has become absolutely necessary and emerging enterprises are not compromising on that front.

Source: connecteam.com | study.com | globenewswire.com | fool.com | shrm.org

DISCLAIMER: The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, and Exela cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a licensed attorney in your area.

Inclining towards more sustainable, transparent, and automated solutions for your businesses’ growth is a vital transformational switch to bridge the gap and restore agility in a changing market environment. Human resource outsourcing (HRO) is one such solution, enabling you to switch to a faster, smarter, and better approach to manage your finances, technology, and human resource management. In the tussle between strengthening your organization by getting involved in foundational processes and looking out for ways to bypass tedious organizational processes, technology-backed outsourcing services offer the perfect solution. Using such services, businesses can outsource some of their most peripheral yet crucial responsibilities to curb costs, increase productivity, and improve their workforce quality. The only challenge that then needs to be taken care of is aligning with the right outsourcing partner. 

HR INSOURCING

For established firms and big conglomerates, managing their employment journey and handling the backend requires a full-fledged HR department with multiple teams working in tandem. Businesses with well-equipped and trained human resource teams that address all these tasks in-house usually have the needed funds and resources to set up and execute all functionalities from scratch. The bright side to having an in-house team is that the coordination is seamless.

However, this may not be a viable option for every business out there. Businesses that run on a slightly tighter budget may find it challenging to put together the funds, time, and resources to manage all tasks and initiatives in-house. In this day and age, not having an adept HR team is a massive setback for any company. Therefore, to procure the necessary expertise and avoid missing out on all the benefits without spending a fortune, such businesses opt to outsource these processes to a third party.

HR OUTSOURCING?

Outsourcing any process initially may seem like a leap of faith, but when you get the right people with the right technology to do your bidding, the dividends are enormous and recurring. The same logic applies to outsourcing HR processes. The thing that sets a great HR outsourcing partner apart from the rest is the approach they use. The ones who employ the right talent and have the best technology in place would be the ones to go with. In addition, letting such HR firms take over specific operational tasks would help you save funds and other resources to strengthen your core functionalities.

One of the biggest myths associated with outsourcing HR processes is that you don’t need any HR expertise of your own after the handover. The truth is that once you outsource your processes, you will still need an in-house expert to coordinate with the partnering HR firm. You would need a strong and established person of contact to keep all the HR specialists from the 3rd party firm on the same page about essential policies, culture, and core values. When you take care of this front, your company will find outsourcing feasible and cost-effective.

CONCLUSION

HR outsourcing not only benefits small businesses but also lessens the administrative burdens of big conglomerates spread across multiple locations. Irrespective of your businesses’ size, strength, and scale, unless you have the needed funds, time, and resources to run your in-house HR department, HR outsourcing is the best option. When you find the right partner that fits your requirements, budget, and technology and perfectly aligns with your goals, your company is prepared to scale itself as you take off and grow.

Sources: investopedia.com | researchgate.net

DISCLAIMER: The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, and Exela cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a licensed attorney in your area.

WHY OUTSOURCE?

Inclining towards more sustainable, transparent, and automated solutions for your businesses’ growth is a vital transformational switch to bridge the gap and restore agility in a changing market environment. Human resource outsourcing (HRO) is one such solution, enabling you to switch to a faster, smarter, and better approach to manage your finances, technology, and human resource management. In the tussle between strengthening your organization by getting involved in foundational processes and looking out for ways to bypass tedious organizational processes, technology-backed outsourcing services offer the perfect solution. Using such services, businesses can outsource some of their most peripheral yet crucial responsibilities to curb costs, increase productivity, and improve their workforce quality. The only challenge that then needs to be taken care of is aligning with the right outsourcing partner. 

BENEFITS OF OUTSOURCING

• Deliver quality services
• Focus on future/long term plans
• Save time, resources, and energy
• High regulation and transparency
• Better and affordable solutions to everyday problems
• Expert advice and consultation
• Increased efficiency
• Error-free management 
• Timely completion of tasks

WHY HRO?

The human resource department is the backbone of any (small-big, local-global) organization, providing essential services by fulfilling various heterogenous roles. However, many expanding and aspiring businesses tend to suffer due to inefficient, overburdened, or uncompetitive HR teams, slowing down their processes and overall growth. Technologically driven HR outsourcing solutions can help organizations streamline and routinize their repetitive administrative tasks, thereby boosting their business and allowing them to spend their time, energy, and resources on core processes. Moreover, HRO is the most convenient and flexible strategic tool, assisting organizations of various sizes in achieving their desired goals and outcomes in a hyper globalized world.   

WHY EXELA HR SOLUTIONS?

Exela HR Solutions work like a support system from the outside yet as an extended part of your HR team, helping you ease out essential yet time-consuming formalities with the help of expert consultation and specialized services. Whether it is about the overburdening of your HR teams or lack or resources, Exela HR Solutions offers services designed to make your journey stress-free without compromising on quality and set standards. Exela understands your future goals, business standards, and work culture, allowing you to opt for customized services that are best suited for the smooth functioning and consistent growth of your business. We believe in inclusivity and respect diversity. Hence, regular feedback, equal and active participation, and active communication are key to a healthy and positive environment vital for enhanced performance and strategy initiatives. 

BENEFITS

• Exela HR Solutions offer a wide range of roles and services, including finance, legality, business, strategy, and technology.
• Payroll administration (time and attendance, monthly payroll, taxation and TDS returns, compensation management.)
• Recruitment outsourcing (recruitment support, background & reference checks, offers finalization, joining formalities, onboarding, separation management)
• Workforce Administration (performance management, learning & development, employee record management, benefits management, incentive plan design, HRIS, global mobility, call center services)
• Compliance (Filing of IT returns, license approvals, compliance management, contract labor management)

NOW IS THE TIME TO SWITCH AND SAVE

We drive you closer to your desired goals by fulfilling specific needs of your business/organization.