Outsourcing: A growth strategy plan
We all know that growing a small business can be quite challenging. As a small business grows there are many tasks to be completed and it is easy to get caught up in the details and overwhelmed with the work at hand. Sales and growth have been your focus. Now you realize you cannot do it all yourself – what do you do?
With the momentum of growth in smaller companies, cost effective solutions to freeing up your time is essential. As a small business owner you can spend twenty-five percent or more of your time dealing with employee paperwork alone. This does not take into account the other employee issues you may encounter, the time it takes to recruit the right candidates and complete other administrative tasks. One reason human resources activities are often outsourced is that these functions typically include such non-core duties as employee benefits administration, staffing, training and payroll.
- Trusting your HR functions to a third-party provider has a number of perks including:
- Gaining immediate access to HR specialists without having to hire extra staff;
- Gaining access to “large-company” benefits packages and powerful employee self-service tools that allow employees to access HR data online any time, from anywhere;
- Reducing the risks that come with enhanced regulatory and legislative compliance by leaving it to the experts;
- Ensuring the right hires are matched to your organization’s requirements and culture.
Outsourcing for some small businesses may have its limitations. What you determine to outsource depends on what outsourced tasks can be completed more efficiently, more effectively and whether your time can be put to better use. To get the most benefit out of outsourcing, as a small business owner you must re-examine the core activities that only you or your employees can do. If an entire activity cannot be outsourced, ask yourself if there are parts of the activity that can? Also consider your time or your employees’ time. Would it be better focused on core business needs and/or on a task that highlights skills and interest?
As your company evolves, you may also opt to outsource your administration, accounting, and marketing needs, in addition to human resource functions, to free up time to focus on the growth of your business.