Posted on: June 15, 2020

Business owners and corporate executives shall all agree to the fact that human resources (HR) is an important function, but involves a lot of costs. However, for most businesses, it is not their expertise or a core function that directly helps them generate sales and revenue. In today’s uncertain, highly competitive, and constantly evolving business environment, businesses must focus their attention and resources on their core business functions. At the same time, the human resources function cannot be ignored as it is important to keep the workforce motivated, help drive company culture and fill the talent gaps in the organization, which has a direct impact on sales and revenue.

Developing in-house capability for all the human resources activities may not be efficient or cost-effective. Also, outsourcing all the activities related to human resources functions may not be pragmatic. Hence, after a proper analysis and after weighing the pros and cons, you can make a data-driven and well-informed decision about the areas to outsource. You need to find the right balance between developing in-house capability and outsourcing to human resources consultants or experts, who have worked with several businesses and have developed expertise and efficiency in this field.

All the businesses aspire to be the preferred employers in the job market. If you are excited to find out how hiring a wonderful human resources consultant or a team can help you fulfill your aspirations, keep reading!

Bring expertise to the table

Human resources consultants have experience working with several businesses across industries and sectors. Hence, they have exposure and insights about the best practices to follow and implement. Human resource is a vast field that includes talent acquisition, performance management, compensation and benefits, labor laws and regulations, etc. Your HR team is more likely to be a team of generalists and not an expert in every sub-field. Hence, leveraging human resources consultants’ expertise shall go a long way to make accurate strategic decisions and benefit from it.

Offer cost-effective solutions

The contractual payment to a hired human resources consultant or a team is based on project deliverables, milestones reached and the results achieved as per the time frame agreed upon. Hence, you pay them for what you get. Hiring human resources consultants reduces your cost of hiring individual employees, time, and resources to train and develop them in-house, retain the trained talent as well as invest in HR-related technology and tools. This time, money, and effort can be better utilized in the development of core business.

Efficient and effective solutions

Providing human resources solutions is the core job of human resources consultants, because of which they gain expertise, knowledge, and skills over some time. They are more likely to be invested in tools and technology such as automation, as well as have access to databases that help them improve their speed of work and accuracy. This increases the efficiency of their work and its effectiveness, the application of which shall ultimately benefit your business.

Allows you to focus on your core business

As you outsource your day-to-day human resources work to the consultants or experts, you can pay more attention to your core business, knowing the experts are handling the human resources side of your business. Having them onboard also reduces the pressure on business owners, corporate executives, and managers for recruitment, performance management, training, development, etc. and enables them to focus on the core work that makes them efficient and effective.

Minimize regulatory and compliance risks

It is better to let human resources consultants take care of regulatory and other compliances of your business, as they are likely to be more aware of the regulations and laws. Also, they are more inclined to keep a tab on updates in regulations and compliances and help you to update your company policies accordingly. This may help you to minimize compliance risks for your business and any resulting penalties or complications due to non-compliance.

Objective feedback on your existing HR capabilities

In case, you have an in-house well-developed and robust human resources capability, you may not want to outsource the work to the consultants. However, even in such circumstances, it is better to periodically hire these consultants to get objective feedback on your current systems. It may help you to know the third-party view on your capability, including strengths and weaknesses. This shall enable you to know the things that you are doing right and help you fill any existing gaps in the current system to make it better and more efficient.

Original Article: https://yourstory.com/mystory/ten-things-remember-startup-before-start-it-up/amp?utm_pageloadtype=scroll