Departments such as HR plays a significant role when running a big company; however, small business owners might have second thoughts on having a human resource department. By the size itself, there might be a small amount of employees; specifically at a maximum of fifty employees. Thus, small business owners often do not see the relevance or the immediate value of staffing human resource specialist or even generalist. Instead, small business owners might just hire a manager or a finance director that could help manage the employees or the owner might think that they could do the HR duties by themselves.

Why bother having an HR function in the first place?

HR department holds most of the administrative responsibilities; specifically, they handle a wide range of different functions, such as  recruiting and training of employees, maintaining good interoffice relationship while applying the labor and employment law. This is why having a human resource department can be a heavy burden to small businesses because with the numerous duties human resource department holds, there is only a limited time and resources. However, mindset as such is wrong since small businesses have the potential to grow. Thus, even small businesses, they also need a solid core business function to run the business. With solid core business functions, this would improve efficiency and have a proper communication between the departments.

Based from experience, companies with more than 50 employees will often find it more accessible to have an in-house Human Resource department since the responsibilities of HR is crucial when it comes to large amount of employees. Aside from recruitment and training, payroll and benefits to employees must also be taken care of and take into account. However, regardless of the size of the company, the human resource department could always be outsourced. And questions such as “To outsource HR department or not?” is one of the critical questions and decisions that owners think nowadays.

Reasons to outsource human resource department may be the same as big companies but it also applies to small companies. The following are the common reasons to consider outsourcing your human resource department,  namely: (1) More Time, (2) Expert in Recruitment & Training and (3) Save and Earn More Money.

More Time

As aforementioned, human resource department holds heavy administrative duties. It is mentioned in a survey made by National Small Business Association that approximately 30 percent of small business owners use up most of their time (six hours each week) doing payroll tax administration. This shows that one out of many functions of human resource was put too much time and effort on. If small business owners would outsource human resource function, business owner could save more time and spend it on the core business function which could generate income instead. In addition, the outsourced human resource generalist or specialist can be trusted since they are really the ones who are expert in this field.

Expert in Recruitment & Training

Recruitment and training of employees is one of the most important functions that human resource department manages. During the recruitment process, it is not only just a hiring process but it is looking for the right potential candidate for the right position. Training and development of employees, on the other hand, is not just for the enhancement of an individual but it is also for the positive change that it could bring to the company. With the right training, it would enhance the productivity and efficiency of employees in the workplace wherein company could benefit since operations behind is being productive and working. If small business owners would outsource human resource function, human resource specialist would be the ones doing the recruiting and training. With this, they could customize the training wherein it is fit for the business.With the help of the expert, recruiting and training would be more accurate since they know exactly what characteristics is fitted for what positions. In addition, they could ensure that employees would not be demotivated/ burnout and would be more likely to stay.

Save and Earn More Money

In order to expand the business, it is certain that businesses would need more money to fund itself for its project. Small business owners might think of outsourcing human resource function is just another  expenses, but this is actually an investment. As aforementioned, outsourcing human resources could save time. With this, it enables to small business owners to focus on the core business function that could generate income; specifically business owners could start with planning strategies that could help them in earning additional revenue. Aside from this, it is mentioned that  outsourcing human resources could help in recruitment and training. If small business owners would outsource human resource function, cost of looking the right fit and training could be saved. With this, business owners would not need to worry for starting the recruitment and training process all over again after a short while.

If you are considering whether to outsource human resource department or not, you could look into Springboard HR Technologies and get to know more about it. Aside from providing HR solutions and services, Springboard PH also trains potential candidate that could be under your human resource department. Springboard PH trains potential candidates to help them achieve excellence in the workplace. Their goal is to help companies to achieve and have a productive and efficient workplace for the people.


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