Emerge from the Pandemic Stronger Than Before with HR Outsourcing
South African businesses are battling with the crippling effects of the pandemic, with 90% of SMMEs in crisis. As our economy sinks to its lowest since the Great Depression, stringent lockdown laws, a decrease in consumer spending, and an increase in operational expenses guides the trend towards businesses down-scaling and implementing remote working policies.
With the current disruption, COVID has exposed many weaknesses. One is the traditional in-house HR model. Staying compliant with ever-changing lockdown regulations coupled with remote working policies, recruitment, skills development, UIF, payroll, sick leave, and changing goals and policies place enormous stress on already-limited Human Resource departments.
In the past, departments like customer service had always been a priority. Now, more than ever – and owing to COVID, organisations realise the importance of Human Resources. While South Africa slowly heads out of summer, businesses wonder whether we can expect another lockdown as was the case in the UK, Europe and the USA over their recent winter months. If so, can you afford to deal with the potential challenges facing your HR department? The future is uncertain, which is why many SMMEs invest in HR outsourcing. Here’s how outsourcing can keep your doors open.
Reduce Your Operational Costs
Today, business is challenging and reducing operational costs is a beacon for business survival—and that’s where outsourcing hits the ball out of the park. A standard HR department comprises at least two or more qualified employees who rely on a fixed salary, UIF, and benefits like medical aid, pension, and a 13th cheque. You will see a significant saving in wages as you are not paying an entire department, but only the hours worked per week.
COVID-19 can affect business for months or years. A classic mistake like forgetting to pay UIF, lockdown non-compliance, and retrenching or dismissing employees without following the correct procedure could see you coughing up vast amounts of compensation at CCMA headquarters. Outsourcing is a tried-and-tested business model. You gain access to the most efficient labour consultants and attorneys, recruitment practices, employee performance management strategies, and the ever-changing LRA, BCEA, and COVID regulations.
If you are one of many organisations struggling during this troublesome time, contacting an HR outsourcing company like CHA Group is the smart choice. At CHA Group, our qualified HR consultants stay current on all the latest regulations, keeping your business compliant and efficient, reducing your operational risks, and saving you money. To keep your company free of HR struggles—get in touch with CHA Group. We will ensure that you get through this pandemic stronger than ever before.