Outsourcing Your HR: Is It the Right Move for Your Business?

In a struggling economy, where many businesses are fighting to stay afloat, hiring a part-time HR consultant is a financially smart move. A multifaceted practice, driven by the government to protect workers’ rights, the employer’s productivity and profits, and referee the relationship between employees, employers and trade unions – human resources is a vital element of running a business.

The workers you choose and the way you manage your employees can be the difference between business success and failure. That said, if you’re on the fence about whether to outsource, here’s how an HR consultant can reduce your monthly overheads and save your money in hundreds of thousands down the line.

 

Cost Savings

One of the most significant advantages to outsourcing HR functions is the fact that it can save your organisation enormous amounts of money. A fully functional HR department requires a team of highly skilled employees that require double-digit salaries and benefits. You will save on salaries, employee benefits, training and induction, and you will have extra time to focus on the core processes that make your business tick – sales and revenue growth.

 

Avoid Non-Compliance and CCMA Headquarters

The CCMA deals with over 100,000 cases relating to unfair labour practice each year, of which 97% of employers lose their case against their employees.  Managing employees and dealing with employee misconduct, poor performance, retrenchment, trade unions, and many other workplace-related issues can be complicated and time-consuming. An in-house employee may not have the same experience and in-depth knowledge as a specialist consultant. Outsourcing from a specialist company ensures that you stay current with South Africa’s ever-changing LRA laws and regulations – and it will keep you far away from CCMA headquarters.

 

Recruitment and Performance Management

Your current team might be great at payroll, and drafting contracts, but nobody is excellent at everything. One of the most prominent advantages of outsourcing is the streamlined recruitment process you gain. A recruitment expert will help you develop an efficient process that will attract and retain top talent. Employee performance is another task an HR consultant can monitor, reducing the administrative responsibilities of the in-house managers and ensuring employee growth.

There’s enormous evidence to suggest that outsourcing HR functions can help you save money, increase in-house efficiency, and keep your organisation compliant with the BCA, LRA, Code of Good Practice, Skills Development and Employment Equity.

At CHA Group, we can assist your company with all your labour issues. Whether you’re looking for consulting services on all aspects of HR, advice on contracts and disciplinary enquiries, or assistance with recruitment or legislation and regulations – chat with us today.

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