Why Do Small Businesses Outsource HR? Everything You Need to Know

Why Do Small Businesses Outsource HR? Everything You Need to Know

Human Resource Management is one of the most important functions of businesses, more so in the post pandemic era. With stricter norms, dynamic workforce, and various work scenarios coming to the forefront, it is even more essential for a company to have a robust HR management team. However, having a dedicated HR team is not the most feasible option for smaller businesses, so they choose the next best option – outsourcing HR. And it has proven to be effective too. If you’re wondering why do they hire a professional agency instead of building their own HR team, here’s your answer:

1. Optimum Distribution of Resources

Small businesses have limited resources and spending these resources optimally is one of their key priorities. This is why allocating resources for building an in-house HR team is not favourable. Outsourcing HR activities to professional HR companies like Prompt Personnel that provide comprehensive solutions is much more economical than building an in-house team, and requires minimum effort on the part of the senior management. Moreover, these HR outsourcing companies are highly efficient and bring years of domain expertise to their work, which makes it favourable for the employer.

2. High-Quality Expertise

Functions like recruitment, salary management, provident fund management, and other HR activities require specialized skills, and HR outsourcing companies have these in abundance. This helps a small business to develop a healthy working environment, resulting in better employer-employee relations and improved efficiency. Such high-quality expertise lets small businesses to focus more on their core competencies and expanding the business, rather than worrying about HR functions. With their expertise HR outsourcing companies help you cut costs, reduce employee turnover, meet regulatory compliance, and build a strong workforce.

3. Exposure to Better Talent

Premier HR companies like Prompt usually have a nationwide network, allowing them engagement with skilled talent from diverse backgrounds. For small businesses, HR outsourcing can help them tap this pool of talent and rope in some of the best for their organizations. This helps improve the capabilities in divisions like marketing, quality assurance, production, operations, etc., giving the organization a better workforce that will translate into better performance. Better talent acquisition will also decrease the cost-per-hire in the long run due to the diminishing employee turnover.

4. Access to Industry Insights & Data

An established HR solutions company works with some of the biggest companies across industries. Therefore, insights from them are results of extensive experience, giving you a competitive advantage in terms of HR strategies. Moreover, since HR companies have been working for years in the domain, they’re able to gather a substantial database of candidate profiles, which lets you choose exactly what you want and need. You can also utilize this data in formulating HR policies and strategies that would be of great benefit in the long run.

5. Long Term Leadership Development

For every small business that wishes to grow into a leading organization, it is important to develop leadership for the future. Leadership development is a long-term process, which requires continuous training and development of the current crop of employees. A great number of HR companies organize training and skill development programs for the employees, in forms of workshops and training camps that help them acquire vital knowledge for developing leadership skills.

Outsourcing is an important decision, and hence, you require a trustworthy partner for the job. With years of experience, a PAN India network, and clientele of premier companies, Prompt Personnel is the right partner for your HR outsourcing needs.

Top HR Strategies

Top HR Strategies

As we step into the aftermath of one of the biggest tragedies of the modern era, the world is not the same, and probably will never be. Business verticals are back to the drawing board, and so are HR managers. This new era needs new plans, policies, and strategies, as words which were seldom used like quarantine and lockdowns are now common. In 2021, HR managers have a lot on their hands to take care of, something more challenging than ever. If you are one of them looking for some inputs for 2021, here’re the top HR strategies for the year:

1. Revamped Skill Development Programs

The global crisis has refuelled the importance of skill development, and therefore, it is only sane to invest in skill development programs for existing and new employees. The better skilfully equipped they are, the better they can perform under stressful and testing times. Moreover, if your employees are better skilled and more efficient, you need to hire fewer people, cutting down extra burden of HR costs on the organization during this phase. Also, skill development programs help the employees to achieve their personal development goals, keeping them motivated to work more dedicatedly and thereby retain them at your organisation.

2. Nurturing Future Leadership

Plant a seed today, so that you can reap the fruits tomorrow, quite a traditional saying. However, it is not just about the top leadership. The lockdown saw companies lay off a number of mid-level managers, and filling those gaps proved to be quite a task. Therefore, it has become essential for HR managers to help the current crop of junior employees develop leadership skills. Experienced companies that provide HR services in Mumbai, Delhi, and other metro cities, like Prompt Personnel, can help your employees a great deal to hone their skills through extensive training programs, shaping the leaders of the future.

3. Redesigning Employees’ Work Experience

The daily routine of an employee prior to the pandemic has become absolutely redundant. Gone are the days of travelling every day to the office in traffic jams and crowded trains. With work-from-home and virtual meetings becoming the “new normal”, HR managers need to design strategies for employees’ work experience keeping these changes in mind. This includes flexible work times whenever possible, integrated setups for remote workforce, introduction of technology and automation wherever possible, personalization, and dynamic reward and incentive mechanisms.

4. Focus on Contractual Employees & Freelancers

While most of the organizations are still in recovery mode, it may not be feasible to fill all the vacant positions with full time employees all at once. Contractual employment is the next best option. HR service providers like Prompt Personnel can help you with extensive contract staffing solutions that can be less time-consuming and more economical. Likewise, hiring services of freelancers will also help you access specialized talents without spending much. Including these two options in your strategies will help you cut down on employment costs to a substantial extent.

5. Better Mental Health & Wellness Policies

The pandemic has impacted a huge proportion of people in the world with mental health issues such as depression and anxiety on the rise due to various reasons like loss of job, isolation etc. Mental health is an important aspect for an employer to consider while laying down HR strategies for the current year. Including employee wellness programs have become important for helping them stay emotionally healthy. Employers also need to rethink their health policies and find insurers that provide a more comprehensive cover. While these steps are beneficial for the employees, it will yield better results for the organization in the long run.

To build a strong strategy, it is important to have inputs from the experts. Being one of the leading HR Firms in Mumbai, Prompt Personnel has excellent expertise in HR planning and management. Working with Prompt will help you lay down the right strategies for your organisation, especially in such times that we find ourselves in.

Ask a Recruitment Expert: How to Build a Recruitment Process

Ask a Recruitment Expert: How to Build a Recruitment Process

Recruitment is one of the key driving forces of every organization, and hence, managers need to place special emphasis on improving recruitment processes. And how do you build a process?? By asking a pro. Recruitment is a professional process of hiring the best talent for an organization, by employing theminimum possible time and resources. It includes a number of stages such as identifying suitable candidates, attracting, screening, shortlisting, and interviewing them for selection. Here’s what experts think you need to build a robust recruitment process:

1. Clear & Extensive Advertising

Advertising is an important factor for building a successful recruitment process. The more you advertise, the more applications you will attract. This will help you to have a wide range of talents to choose from for the openings you have. However, for your ad campaign to be fruitful, it needs to be clear in describing your requirements and what you have to offer. The last thing you want is a barrage of underqualified applications for a position that will only eat your time in scrutinizing and rejecting them.

2. Definitive Mechanism for Evaluation

Once you receive all the applications, you will need to process these applications for selection. Selection is usually a multi-level process, going right from the HR to the top-level management. At each level, the company must have a clear mechanism for evaluation, which would ease the workload of the recruiters as well as the candidates. While the mechanism can be altered or bypassed as and when required, having a preset evaluation system helps you evaluate the candidates on merit, and subsequently take better calculated decisions.

3. Simplify Onboarding

You may have the best selection process, but if your onboarding procedures are complicated it may turn off deserving candidates. Cumbersome procedures have a history of delaying processes, and make it more of a chore rather than an experience. Therefore, you need to simplify onboarding as much as possible. Make the clerical work to join your company simple and easy, so that they are less stressed once they are on the floor. This also includes simplifying bank accounts linking, PF & ESIC, enrollment to facilities, ID-Card Procurement, etc.

4. Ensure Optimum Compliance

Compliance will have more relevance in the post pandemic era than ever. Not only while recruiting a new employee but also for the existing employees you need to ensure that all the laws are complied, especially the labour laws and other laws related to employees’ rights. Any gap in compliance could cause unnecessary delays in the process, sometimes resulting in heavy penalties by the labour law authorities too. End to end HR solutions companies like Prompt Personnel that provide recruitment services also offer labour law compliance solutions. You can utilize their expertise in staying total compliant and ensure you don’t end up on the wrong side of law.

5. Hire a Reputed HR Consultancy Firm

To be a pro, you got to be with the pro. Working with reputed recruitment consultants like Prompt Personnel gives you immense experience in the core competencies required for building a successful recruitment process. Such HR firms can offer services to a large number of clients across a number of industries, which helps them generate an extensive database of candidate profiles and analyze market trends. Data analytics and insights from a reputed HR consultancy firm gives you a competitive advantage in building a more efficient recruitment process.

Working with professional recruitment service providers like Prompt Personnel not only gives you useful insights that help you build a strong team, but also expedites the entire process. Moreover, banking on their strong team and exhaustive candidate profile data, you’re more likely to find the best talent for each role.

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