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Why You Should Outsource Your HR Function

Without human resources professionals, sustained growth business growth would be next to impossible. By supporting leaders to manage their workforce with sensible decision making, HR teams enable companies to adapt to a competitive landscape — and thrive in the process.

In this article we’ll highlight the key advantages of outsourcing HR functions to a specialist recruiter, particularly when it comes to reducing your costs and staff attrition while bumping up your retention. That’s certainly an enticing combination!

Source Staff Faster

By outsourcing HR functions to a specialist recruiter, you gain the benefit of time. In the current tight-talent market, a quick recruitment process is a must. It’s the difference between snagging that great candidate and losing them to a competitor.

Recruiters already have best practice processes in place and access to resources (such as applicant tracking systems and additional HR software solutions) that streamline essential HR functions. Simply put, they know how to get the job done faster!

When it comes to sourcing new staff, there’s no valuable time wasted on your end as they oversee the entire process for you – advertising, reviewing applications, interviewing (a whole skill in itself!), communicating with candidates in a timely fashion, as well as supporting you in the selection, offer and negotiation stages.

Some firms, like our team at Ryan Recruitment, can also take the burden of onboarding and training off your shoulders, a critical part of ensuring your new hire stays.

Increase Your Chances of Finding The Right Fit

A recruitment agency is well-versed in the art of interviewing candidates. They have many years of experience that help them spot the difference between a good fit and an embellisher.

At the start of your relationship, they’ll use their prowess to extensively interview you to fully understand your business priorities and culture. They’ll then use this vital intel to help them evaluate candidates and determine if they fit the role and your company. In addition, you’ll have access to a much wider pool of talent than you could find on your own. A specialist recruiter has extensive networks to draw from, filled with active and passive candidates.

Last but certainly not least, your recruiter can assist in helping you craft a package that entices top talent and gets them to say yes. They regularly undertake the labour-intensive task of market research to remain in touch with the latest industry knowledge, particularly around salaries and top candidate wants and wishes. With their support, you can create an attractive remuneration and benefits package.

Save Money

Many businesses falsely believe that outsourcing HR functions is prohibitively expensive. But the converse is true. Right now, you might have one person or a small team of people handling your HR, all on full-time wages and associated overheads.

But by outsourcing, you have greater flexibility to scale your HR operations up or down depending on your business needs. This is especially important in industrial sectors, like logistics and manufacturing, where seasonality impacts your hiring.

We think it’s important to provide our clients with a variety of HR outsourcing options, as no company is the same. You can hire us on a retainer to develop, manage and implement your HR functions so you can focus on other core business activities. Alternatively, use our services on a project-by-project basis, or as a seamless extension of your management team.

Improve Employee and Candidate Experience

The candidate recruitment experience really matters. According to a 2022 Hiring Reimagined global survey of almost 4000 workers, 70% dropped out or considered dropping out of their last hiring experience. The top three reasons related to the recruitment process as being too lengthy (39%), too complicated (37%), or having too many touchpoints (27%).

Outsourcing HR functions addresses these by ensuring your process is as streamlined and fast as possible, exponentially improving the candidate experience and keeping them in the recruitment pipeline.

But contracting out your HR needs can also help with employee retention. Apart from properly onboarding new employees (retention essential), our Ryan Recruitment team offer an employee relations service. It can involve:

  • Developing employee training and career development programs to keep them engaged and motivated
  • Assisting you in undertaking performance reviews
  • Dealing with employee-related HR issues,
  • Helping staff deal adjust to change resulting from growth, restructuring or downsizing.

Better Compliance

One of the real challenges in HR is keeping up with ever-evolving employment legislation and regulations. New Zealand has seen immense change in recent times in this area. Minimum wage increases and parental leave changes are just a few recent examples.

As taking compliance risks can result in fines and unwanted lawsuits, it’s important that you have someone with plenty of experience in this area by your side. A respectable specialist recruiter is well-versed in staying up-to-date with the latest HR laws and regulations, and ensuring you remain compliant at all times.

With cybersecurity an important consideration, especially when it comes to handling sensitive employee data, outsourcing your HR to a company with a proven technology platform to keep your data safe, makes business sense.

Further HR Support

It’s clear that HR is a vital cog in your business wheel, it covers a wide spectrum of areas requiring in-depth knowledge – payroll, sourcing staff, compliance, employee engagement, retention, and more.

No single person (or three!) has the capacity to be an expert in all these fields. That’s why outsourcing your HR functions to the right partner can be supremely beneficial, offering you a team of HR specialists to assist on an ongoing or as-needed basis.

Please get in touch with one of our New Zealand-based Human Resources specialists here at Ryan Recruitment to discuss your outsourcing needs.