As a Nigerian Business owner or a corporation with business interests in Nigeria, having understood the business environment, managing market competitions, and gradually expanding, you may be wondering like other organisations do at a certain point of growth – when should you outsource human resources.
Like many other businesses, whether small, midsize, or large, who have chosen to outsource HR, it is always advised to carry out proper research on outsourcing and the best HR software that fits your organisation’s needs.
This article will identify salient points for outsourcing HR, and the reasons why small, midsize, and large companies outsource HR.Depending on the country and the laws governing businesses, small and midsize companies are usually defined and determined by their number of employees and revenues.
On the other hand, large companies are companies that have more employees and generate significant revenues that are more than what a small company generates. However, the similarity between a small company and a large company is that they both can’t do everything alone.
The need for people, that is, employees is critical to achieve organisational goals. And since employees are the greatest and most valuable assets of any organisation, there is a necessity that they are managed, trained, developed, motivated, and properly compensated. This is where human resources comes in.
HR understands the need to grow and be productive as an organisation; they also realise the significance of employees in performing well, and their functions and operations ensure that strategic initiatives and objectives are developed, as well as the execution of those initiatives and objectives.
A Nigerian business should consider outsourcing HR if the business requires these: professionalism, cost-effectiveness, increased growth, technology-enhanced platform, compliance with laws, and so on.
Professionalism
One of the proven reasons why companies outsource HR is the level of professionalism displayed by the group of HR specialists. While this may not be readily available by the internal HR team, the outsourced HR ensures that tasks entrusted with are carried out without a trace of unprofessionalism.
Companies can get in return a certain level of expertise which is not readily available internally. If there is a need to outsource HR, a streamlined HR process, expertise on HR functions, and other issues related to payroll and recruitment of talents is handled professionally.
Cost-effectiveness
For a business in Nigeria looking out for means to reduce costs and expenses, while sustaining productivity of employees, outsourcing HR is always a ready to use option. Cost-effectiveness is not only practiced by small and midsize companies, it is also the goal of large companies to hire the best talents, train, and develop them for organisational growth without having to break their accounts.
Increased Growth
Outsourcing HR helps large companies to navigate the complexities that accompany the laws in the States where their businesses are represented.
Also, issues related to hiring, onboarding, and training are properly addressed since the outsourced team consists of professionals.For small and midsize businesses, having an internal team of HR could mean more spending and lesser cost-savings options, and so, outsourcing HR increases the chances of growth.
Technology-enhanced Platform
One way to remain innovative and competitive for both small and large companies is by adopting technology in their mode of operation. And this is one of the many benefits that outsourcing HR provides to companies – access to technology-enhanced platforms for HR operations.
By accessing HR software, burdens associated with human resources management, which prevents the internal workforce from being readily productive is eliminated, leaving room to achieve more organisational goals and remain competitive.
Compliance with Laws
Being on the wrong side of the law can have implicative results for businesses.
This is why laws and regulations that are specifically designed for labour and employment must be adhered to.
Employment laws and other regulations and compliances are well handled with outsourced HR.
They execute all that is required regarding compliance and laws guiding employment of labour; the burdens that are associated with legal matters of employees and labour are borne by the team.
