Top 2 Reasons HR Outsourcing is the Smart Move During a Recession
In a matter of only a few months, the global workforce as we knew it changed drastically. We have entered extraordinary times, and the sudden shift in work culture has created many new challenges for small- to medium-sized businesses. Whereas the chief priority of HR has always been to manage employees and ensure the correct policies and procedures are in place and followed, things have changed. Today’s top priority is strategy, retrenchment, remote working, and adopting efficient ways to manage costs, resources, and human capital.
With South Africa’s economy pushed to its lowest ever, businesses are trying their very best to keep everything in perspective and aligned – but it’s not as easy as it sounds. Right now, there is no room to spend ineffectually, and businesses that realise this have a better chance of overcoming the recession. As a result, this is changing the logic of hiring to outsourcing.
Here are two reasons why outsourcing is the smart move during a recession:
Outsourcing your HR is not a free service, but it’s a lot more affordable than hiring a full-time HR professional who will require a competitive salary, a thirteenth cheque, benefits, pension, and medical. Unlike most in-house human resource departments, outsourcing shows value add. With the focus on business growth, operational cost reduction, performance, and talent acquisition and retention, outsourcing will bring a measurable return, and in a shorter period too.
Stay Current with Policy, Payroll, and Operational Changes
Over the past few months, businesses have had to make rapid and accurate changes, including updating their policies and payroll procedures. Adding to that, retrenchments require the correct procedures, and salaries and benefits must be updated for SARS too. The key to keeping your business afloat is preparing for the unforeseen and staying up to date with policy changes, payroll changes, and organisational procedures. Business owners that fall behind will struggle to make it through 2021, to say the least.
At CHA Group, we believe that change often presents opportunities, and outsourcing is an opportunity that will help you weather the economic downturn. Whether you have an established human resource department but they are swamped with administrative tasks, or you have never needed a human resource department before and can’t afford the cost of hiring a full-time HR support now, chat with CHA Group. We provide complete HR outsourcing solutions across the board throughout South Africa.