Outsourcing is one of the easiest ways to get the staff that you need in your establishment, without having it staffing on a retainer basis. Most small and medium scale businesses often find themselves in situations where they need a certain type of assistance, but they cannot afford to permanently keep the experts in the same, and this makes outsourcing a very lucrative solution. Here are some of the positions that you can outsource for and those that you should never outsource.
If you are running a small company which has less than 25 employees, you do not need a full-time human resource manager because there isn’t much to be managed yet. You can simply hire an agency to conduct the recruitment when a member leaves and needs to be replaced.
If your business just started and you aren’t having massive financial transactions or large volumes of money to handle on a day to day basis, you do not need to have an in-house accountant handling the taxes because chances are that you will only be having your taxes done once a year.
- Payroll management
Payroll management is one of the business practices which are complicated and need to be kept as confidential as possible. When you bring someone in on the retainer basis, chances are that they will start interacting with the other employees and soon, everyone will know what everyone else is earning. When this happens, your workplace can become extremely difficult to control. It would therefore be best to have the payroll managed elsewhere and minimizing the access your staff has over it.
- Performance management
Employees are used to situations where their supervisors tell them to write down KPIs for the quarter or the year and when the period lapses, an evaluation is done to see whether their performance met the stated threshold. Unfortunately, research shows that most of the time, when the assessment is done by an insider, it is never as impactful as what a non-partisan third party offers.
Having an insurance professional making negotiations about medical plans and other benefits is not a job that needs a full-time employee because, in most small companies, it only happens once in a year anyway. It is best to consult an outsider and have them handle the issues away from the company.
What you should never outsource
The same way that there are things which are best implemented when they are outsourced, there are also other things that are best when handled in-house. Here are a few of the business practices which you need to keep within.
- Corporate culture implementation: this is one of those things which can never be imposed or forced. Always let the employees drive the feel of the office and if you need to make changes, let them come up with the suggestions.
- Termination management: Can you imagine the horror of having an outsourced HR tell you that you have been fired? Having an outsider deliver such life-changing messages to your staff communicates that you do not care about them and could have far-reaching consequences.
- Retention: as a business manager, it is your responsibility to make sure that the employees who have spent time with your company and learned its inner workings stay. Avoid referring to outsiders to help you with this aspect of your business because you should have your employees to feel wanted by you.
- Employee development: There are companies that make the mistake of thinking that it could be best to let outsiders handle development. You know your employees better than anyone else and you are the best person to advise them on how to grow in their career.
- Succession planning: again, the leadership of an organization must own their vision. While you could get insights from outsiders on the best people to handle succession, it is always better when it comes from you.
Those are the five business processes that can be outsourced and those that you should avoid outsourcing for the sake of your business success.