8 Warning Signs Telling Small Businesses To Choose HR Outsourcing Services

March 07, 2017

8 Warning Signs Telling Small Businesses To Choose HR Outsourcing Services

HR outsourcing services have proved to be a boon for small businesses. This is probably due to the fact that a small business that is just in its beginning stages spending money on activities which would not generate direct revenue can be really frustrating.

Arranging even simple activities like payroll and employee development and deciding on the benefits and the rewards can be time-consuming and tiring. In such situations, it becomes important to outsource your HR services to another party so that you can devote your time dedicatedly to your business.

HR outsourcing not only saves you up on costs it also provides you better quality services and the skills and knowledge which otherwise is difficult for you to arrange on your own. However, there is a correct time when you should be looking at doing so. Most importantly the below-mentioned warning signs would let you know that it is time for you to hand over this responsibility to someone else.

1) Time wastage: There is no doubt in the fact that any new small enterprise that is set up has to go through handling many things at the same time. However, HR problems like skill training and payroll are quite time-consuming and if you are spending a decent time resolving them then probably you are not paying much attention to other much more critical activities. Whether it is trying to focus on learning and development of skills related to employment laws, or wasting time looking for the ideal guy to fill in a vacant opening the time spent stops you from strategizing other important tasks. If you are also doing the above it is the ideal time to look for external HR outsourcing companies.

Source: The Federation of Small Businesses

2) Limited exposure: A person who is skilled and trained in HR solutions will understand the key aspects of hiring and training employees.If you are able to find the correct third party service to handle your HR responsibilities, then they may be best to look after payroll outsourcing as well. The practical and legal aspects of HR can be tiresome and become a liability if not handled well.  What’s more, if these points are not taken care of adequately you might face the risk of facing Tax issues later on. It is critical to understand that one tax reporting violation could be detrimental to your business and hence a consideration should be paid to outsourcing HR for the same.

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3) Money constraints: An initial set up of a business requires investments.  Moreover, at the beginning, itself, you cannot expect to get immediate returns on your investment. The amount of time spent on unproductive tasks will apparently start showing signs of slowing down the revenue generation. If you are also facing such a situation and it is tough to manage the money then maybe it is time to consider other options. Outsourcing your HR management solutions will help you in gaining the experience and knowledge of someone who is already adept at the same tasks. Efficient payroll outsourcing companies will relieve you of this burden and let you devote your time to tasks which would keep the ball rolling in terms of money.

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4) Business Growth-In the beginning itself your business has clearly shown a positive sign and is showing the scope of an upward rise. This also means that you would need more employees to handle your day to day operations. A further implication is the need to have a proper HR to be handling the processes of shortlisting, recruitment services, induction and training of the new employees. However, if the task and cost of having a stable HR team of your own is still an unachievable target it is best to outsource them to reliable HPR companies.

5) Technological backwardness-Amongst all the pressures of setting up a new business is the continuing changes in technology and the HRIS systems. The use of multiple programs to handle processes like payroll services, attendance and task management not only demands time investment but is also difficult to understand. Payroll HR cloud can be the next best thing for you to implement in your new business. Outsourced agencies would have a fair amount of information on which HRIS technology is the best suited and should be considered for your kind of work.

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6) The increase in Errors-Your limited staff is overworked, and numbers of errors being made are increasing. In spite of trying too hard the level of customer service you wish to provide, is showing a steep downfall. The repercussions of not paying heed could be losing your existing clients and eventually go out of work soon. The sooner you notice these signs and outsource these jobs to a recruitment agency the quick your efficiency will be normalized.

7) Issues in employee selection– The business may be in its infancy stages at present but soon you will be showing signs of expansion. The execution of the same is not possible until you have a professional team to handle all the important departments of your business. What kind of job descriptions and task definitions will get you the best talent can be decided perfectly only by HR vendors who have expertise in the same.  Giving the responsibility of HR training and development of these perfect fit employees is going to benefit you in the long-term.


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8) Lack of accountability: The business is all set and running, but your team is still in confusion over their job roles and responsibilities. Most of them are doing their HR tasks well, but the fine lines of accountability are missing. The employees are still in the dark over whom to consult for basic HR questions, and hence certain tasks are not just being accomplished. Once you allocate your HR responsibilities to recruitment consultants, the rest employees can go about completing their job-related tasks.


To attain the desired level of success any new business has to be quick enough to respond to the new changes it faces. Any opportunity coming their way is also a key to the future possibilities of expansion and growth and hence cannot be ignored.

Payroll Outsourcing in India has gained prominence as an after effect of the above problems faced by small businesses. Pay attention to the above-mentioned signs as they are clearly an indication that it is time for you to delegate your responsibilities to trustworthy external HR consultants. If you are also looking for the same you can search on the internet with the required information like “HR outsourcing companies Indiaand you will be linked with the best ones.  However don’t be hasty in picking a service provider as one wrong choice can be the cause for more trouble.

March 07, 2017

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